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Top 10 Systems for Your Enterprise Architecture

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Construction, Consumer Goods, Distribution, Enterprise Architecture, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By Sam Gupta / June 26, 2022 March 26, 2025

Enterprise architecture is more than a technical concept. But what is enterprise architecture? Think of enterprise architecture as the connected business systems that drive your operational processes with four primary perspectives. 1) business architecture, 2) process architecture, 3) data/information architecture, and 4) system architecture. Generally, most industries have two choices when building their architecture. They can either buy a system or build it themselves. But regardless of whether you buy or build, your enterprise architecture is equally important.

Top 10 Systems For Your Enterprise Architecture - List

Also, some people might feel that ERP might be the answer to all of their system issues. They might also feel that enterprise architecture is only relevant for larger companies. However, even ERP systems require a well-defined architecture around them. So, regardless of the organization’s size, the lack of architecture results in ERP implementation failure. As well as poor adoption of digital initiatives and unforeseeable business disruptions. Understanding the enterprise architecture and each system’s role is crucial for your digital journey. In this article, we have covered major systems that your architecture might need as you grow.

10. Project Management

Which companies need to include PM as part of their enterprise architecture? In general, your enterprise architecture may not require project management software unless you execute these projects for your core business operations. For example, the ad-hoc engineering projects executed to improve processes or a CapEx building would not be part of your enterprise architecture. In other words, they can remain siloed. As far as the scope of enterprise architecture goes, these projects are applicable to businesses that sell them as their core offerings. These businesses include marketing agencies, defense contractors, sign manufacturers, or construction supply manufacturers.

Why do you need project management software? Generally, most project-centric organizations seem to be human-resources-driven. And these projects need to be estimated accurately and monitored throughout the process to avoid financial loss. So this is the core reason why PM software is critical for these organizations.
Who needs to interact with project management software? Most commonly, these projects typically serve many different stakeholders. It could include the subject matter experts or individual contributors. It could also include project managers, estimators, and financial executives interested in the financial health of the project.
Which capabilities do you need in the project management software? Typically, the capabilities crucial in project management software include resource scheduling, project governance, procurement, and timesheet management. You might also choose to go for packages such as timesheet software vs. project collaboration software.
What are the different options for project management software? Generally, there are two choices for project management software. For example, it can be standalone software or integrated with financials. In the startup phase, you might be OK with keeping it standalone. But as your project volume and scheduling complexity grow, you might need an option natively integrated with your financials.

9. Data Warehouse/Data Lake

Which companies need to include data warehouses as part of their enterprise architecture? Generally, most SMB companies might not include a data warehouse in their architecture. Because the operational systems crucial for their workflow take priority. However, once you have multiple systems in your architecture and struggle to get 360 degrees of your business due to the disparate data sources, you might need to include it in your architecture.
Why do you need data warehouse software? Typically, companies require a data warehouse when they need to consolidate insights from multiple systems, external or internal. Moreover, the drivers for data warehouses could be regulatory or forecasting. As well as for enabling decision support systems. It can also help them with historical data that is unavailable through their operational systems. Historical data typically gets lost when operational systems are replaced.
Who needs to interact with data warehouse software? In general, there are several stakeholders for data warehouse software. But the primary consumer would either be a BI tool. Or data scientists who might further augment the data and feed it back to the BI tool.
Which capabilities do you need in the data warehouse software? Depending upon the use case, several technologies are available to build a data warehouse or lake. But the most basic ones would be a separate data store. As well as ETL technology to move data nightly. The ETL technology helps avoid the impact on the operational performance due to the overhead exerted by the ETL pull.
What are the different options for data warehouse software? Generally, there are numerous technologies available to build data warehouses. But the easiest one would be to rent data warehouse capabilities, available through major cloud providers such as Azure, AWS, or GCP.

8. Business Intelligence (BI, S&OP, CPM, and ODP)

Which companies need to include business intelligence as part of their enterprise architecture? Typically, companies need business intelligence systems such as S&OP, CPM, and operational data platforms. They need it when they might have business performance issues such as inventory, cash flow, or waste in the manufacturing process. However, these systems are often siloed in SMB organizations unless offered pre-integrated with the ERP, etc. But as the complexity of your architecture and systems increase, you might need to integrate them.

Why do you need business intelligence software? Mostly, these analytical systems have pre-built workflows. These workflows can augment your datasets or allow additional dimensions such as seasonality to be added. They might also provide you with insights that might be harder with operational systems. It might be harder due to the rigidness of their data structure and impact on operations. In general, the role of business intelligence is to provide interactive analytics from data that you may have in your data warehouse.
Who needs to interact with business intelligence software? The consumers of business intelligence software are typically business users who need additional insights and KPIs for their workflow.
Which capabilities do you need in the business intelligence software? Generally, the main capabilities required in business intelligence software would be interactive analytics. And the analytical workflows to facilitate collaboration among business users.
What are the different options for business intelligence software? Typically, several options are available, with some offering their internal data store for the temporary storage of interim datasets. And the options could also be function specific. For example, a separate tool might be available for S&OP. Or the tool may offer connected planning as part of the suite.

7. Integration Technologies

Which companies need to include integration technologies as part of their enterprise architecture? Unless you have siloed systems or maintain everything in one system without additional channels, you may require an iPaaS. On the other hand, workflow collaboration would be an additional layer on top of the core operational architecture. You need it to enable master data control and ad-hoc workflows. Generally, Workflow collaboration tools don’t impact the enterprise architecture as much unless they are overused or overengineered.

Why do you need integration technologies? Essentially, integration technologies allow you to keep all your integration code in one place. Without an iPaaS, your choice would be to keep the integration code inside the source or destination system. And due to the additional overhead required, this choice may be more expensive to maintain over time. They might also be prone to bugs as the source and destination systems upgrade their interfaces. Additionally, the integration technologies allow safeguards if systems operate at different speeds.
Who needs to interact with integration technologies? Mainly, the integration technologies are used by developers or admins who need to ensure that integration flows work as expected.
Which capabilities do you need in the integration technologies? In general, the integration technologies must support various integration patterns such as HTTP, FTP, or Queue-based. It must also allow building an orchestration layer to transform and massage data in different formats.

What are the different options for integration technologies? Generally, there are several options available depending on the budget and capabilities. For example, if the company doesn’t want to utilize an iPaaS, they might host integration code in their existing data center or write it inside the source or destination system.

6. Manufacturing Software/MES

Which companies need to include manufacturing software as part of their enterprise architecture? Typically, These systems are applicable to manufacturing companies. They might use a separate MES system or a collection of tools that might serve a similar function as an MES. They also need a MES system if they have real-time integration with machines. We also need to collect and process operational data to optimize shop floor workflow. On the other hand, CAD, engineering, and R&D software typically have minimum impact on the enterprise architecture. The only cases where they might have an impact are when they need to be integrated with the operational flow to minimize data entry.

Why do you need manufacturing software? Since the shop floor is the primary cost driver for manufacturing companies, they need different tools to improve shop floor productivity. As the maturity of the shop floor and the order volume increase, they might need to integrate their shop floor technologies more.
Who needs to interact with manufacturing software? Typically, the primary stakeholders are plant floor users, supervisors, and manufacturing executives who need them for their operational workflow.
Which capabilities do you need in the manufacturing software? In general, the shop floor capabilities might include scheduling and in-process inspections. As well as real-time integration and control of the machines, and engineering and R&D workflows.
What are the different options for manufacturing software? Mostly, the options could be siloed manufacturing software if your accounting function is completely siloed and disconnected from operations. It could also include an MES in conjunction. With an ERP, or a standalone manufacturing ERP (depending upon the company’s operational complexity).

5. Supply Chain Software (P2P, WMS, and TMS)

Which companies need supply chain software? It would depend upon your business model. If you have an extremely busy warehouse, WMS might be the first system you might introduce even before an ERP system. As the complexity of your business grows and order volume increases, you will be adding several specialized systems to your enterprise architecture, including TMS and P2P. Generally, systems such as strategic sourcing may not have as much impact on the enterprise architecture and can remain siloed.

Why do you need supply chain software? Most ERP systems may not be as efficient for warehouse or transportation operations. For example, suppose the out-of-the-box processes of ERP aren’t sufficient to meet the desired efficiency. Or integration requirements with warehouse equipment. In that case, you might need a specialized warehouse or transportation system.
Who needs to interact with supply chain software? Generally, the primary consumer of the supply chain systems would be warehouse operators and supervisors, logistics managers, and operations executives.
Which capabilities do you need in the supply chain software? The capabilities could be as simple as barcode scanning, rate shopping, or full-blown supply chain control tower capabilities to monitor the entire supply chain.
What are the different options for supply chain software? You have several options for supply chain management, with some software offering end-to-end traceability, including any exceptions as goods move through the supply chain. However, as the system complexity increases, you might need to select a specialized system for each area of the supply chain where you might have the most issues in your processes.

4. Human Capital Management

Which companies need to include human capital management as part of their enterprise architecture? Most companies start with essential payroll software that might be clubbed with an accounting system. However, as the number of employees grows in the organization and depending upon the criticality of human resources and compliance needs, you might need a specialized HCM system. The HR and HCM systems can remain siloed for SMBs as they don’t impact the enterprise architecture much. However, the integration may be required if you have HCM processes embedded as part of your operation flow, such as sales comp calculation.
Why do you need human capital management software? They need a specialized HCM system to meet each state and country’s compliance and reporting requirements. Generally, HR managers have one of the most complex recruiting, onboarding, and learning workflows, which drives the need for a specialized HCM system.
Who needs to interact with human capital management software? The primary consumers of the HCM systems are employees, HR managers, and finance executives.
Which capabilities do you need in the human capital management software? The capabilities of an HCM system could include onboarding, training, skill development, performance management, and recruiting.
What are the different options for human capital management software? The options for HR and HCM could include simple payroll software or a full-blown HCM system to manage the needs of the entire HR department.

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3. E-commerce and POS Platforms

Which companies need to include digital commerce as part of their enterprise architecture? Most companies selling products or services through retail locations or virtually would require several tools to enable their sales process. For example, if the order volume is too low, they might process the orders directly in the ERP or accounting software.

Why do you need digital commerce software? If digital is your primary customer acquisition channel, you need tools designed to be efficient for the channel. For example, a POS system is designed for faster processing at retail locations. eCommerce platforms, on the other hand, have several capabilities tailored to the needs of digitally-savvy customers.
Who needs to interact with digital commerce software? These tools are primarily used by the sales and marketing teams to interact with and find customers.
Which capabilities do you need in digital commerce software? At a minimum, you need a content and commerce management system that allows you to build a decent web presence and optimize the site for search engines. Then, you might have more robust needs, such as digital asset management and a digital experience platform. It will also provide a product information management system to support experiences such as buy-online-pickup-in-store and omnichannel.
What are the different options for digital commerce software? There are several options available depending upon the digital maturity of the organization. As you grow your digital presence and revenue, you will be including specialized software such as product information management or digital experience management.

2. ERP and Accounting Software

Which companies need to include ERP as part of their enterprise architecture? The companies need an ERP system when siloed systems become a bottleneck to their growth and require substantial admin efforts to enter data in multiple systems. Companies that might be below $10 million in revenue might be able to manage without a fully integrated ERP.

Why do you need ERP software? The ERP systems are designed for a cross-departmental operational workflow where the alignment of multiple functions such as sales, finance, procurement, and operations is necessary to deliver goods and services timely. And the ERP systems offer cross-departmental insights and KPIs that would be inaccurate and require substantial efforts with siloed systems.
Who needs to interact with ERP software? Everyone who touches the operational core, including sales, operations, finance, and procurement, might interact with an ERP system.
Which capabilities do you need in the ERP software? At a minimum, an ERP system could include sales order processing, AR, AP, GL, purchase order processing, cost accounting, manufacturing, and project management. ERP systems typically don’t have operational capabilities for HR, marketers, and sales. Instead, they might use specialized software that integrates with ERP, such as HCM or CRM, for their operational workflow.
What are the different options for ERP software? There are several options available as the maturity of an organization grows, starting from essential accounting software to full-blown ERP systems. These systems might be able to manage most operational workflows where departments might overlap financially.

1. Customer Relationship Management

Which companies need to include CRM as part of their enterprise architecture? The smaller companies start with a standalone CRM system to manage their customer interactions until the point of order processing. Then, as the order volume grows, the CRM must be integrated with the ERP and eCommerce systems.

Why do you need CRM software? CRM systems manage the entire workflow for sales and marketers during the pre-sales process. It starts with marketing automation, lead follow-up, and opportunity tracking. As well as quoting, customer journey builder, and marketing spend tracking. And finally, sales planning and forecasting, as well as territory management, are important.
Who needs to interact with CRM software? The primary consumer of CRM software is sales and marketing teams.
Which capabilities do you need in the CRM software? When you start, a small CRM with primary lead distribution and account tracking capabilities may be sufficient. But as you grow, you need more advanced marketing automation, territory planning, and quote management capabilities.

What are the different options for CRM software? Several options are available, starting from standalone software for CRM and marketing automation. But as you grow, you will need at least the entire sales and marketing function to be integrated with at least light integration with the ERP system.

Conclusion

With these systems, you are touching the surface of the complexity of enterprise architecture. As the technologies mature and operational complexity increases with ever-growing customer expectations, the enterprise architecture will likely play a more significant role in the enterprise system design.

So when you are looking at a new system next time, think about how the system might fit in the architecture. And what you need to do to ensure that the data integrity across your enterprise architecture is maintained. And hopefully, this post has given you some insights into how each system fits into the digital architecture.

FAQs

Why should business executives worry about enterprise architecture? Isn’t that the responsibility of IT?

Well, think of enterprise architecture as organizational design. The enterprise architecture will also drive whether the insights and assumptions you might be operating on will be accurate or not. Think of the implications to your business if you operated on completely wrong data. For example, you might be putting significant emphasis on the territories that may not perform or produce products that might not sell well.

What do executives need to do to have the right architecture in place for their organization?

The way business plan is important to ensure the balance of supply and demand to meet growth goals. Enterprise architecture is your “digital plan” that sets the clear expectation and interaction model of each system.

Who should drive the enterprise architecture processes inside an organization?

Due to the cross-functional nature of the enterprise architecture, CEOs or cross-functional leaders such as product managers are most suited to drive. And to ensure that all departments are sticking to the enterprise architecture. And the architecture does not break because of the introduction of a new system.

Top 10 Pharma ERP Systems in 2024

Leave a Comment / Blog, ERP, Life Sciences / By Sam Gupta / June 13, 2022 March 17, 2025

Specialized ERP systems for the pharmaceutical industry provide tailored features, outperforming generic alternatives that lead to longer implementation times. Crucially, pre-baked capabilities within the system’s data model prevent add-ons from struggling with version upgrades. Opting for pre-built pharma capabilities, such as managing multiple serial and lot numbers, boosts implementation success—features often lacking in smaller ERP systems designed for single serial or lot numbers. While sufficient for other industries, attempting to implement such embedded layers might derail implementations, with unintended consequences because of the intertwined nature of data dependencies.

While pharma-specific ERP systems provide deeper last-mile capabilities, their focus is likely to be limited to a few business models, posing scalability challenges for large companies in growth or acquisition phases. Predicting future needs is complex, especially for companies engaged in M&A cycles, owned by private equity, or part of a holding company structure. While larger solutions support various models, implementing compliance-specific features can be costly. Smaller systems may also encounter limitations in global applications due to flatter architecture.

Technical expertise alone is insufficient for pharma-specific compliance; deeper subject matter expertise is essential. This includes capturing NDC codes, managing both serial and lot numbers for the same product, and handling inventory based on expiring lots. Addressing data structure nuances is one challenge, but meeting aggressive traceability demands and DSCSA compliance adds another layer. Evaluating ERP systems for pharmaceutical needs is facilitated by exploring the top 10 pharma ERP systems, providing valuable insights.

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Criteria

Definition of a pharma company. These companies in the pharma ecosystem include pharmaceuticals, biotechnologies, cannabis, and nutraceuticals. They might also have distributors, repackagers, dispensers, and manufacturers — companies of all sizes in this ecosystem.
Overall market share/# of customers. The higher the market share among pharma companies, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap for the pharma companies, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with a heavy presence from pharma companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
The pharma industry market share. The higher the focus on pharma companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with pharma companies. The more aligned the acquisitions are with the pharma companies, the higher it ranks on our list.
User Reviews. The deeper the reviews from pharma companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product like QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. Blue Link ERP

Blue Link ERP focuses on serving pharma distribution firms, ideal for those in the startup segment outgrowing QuickBooks with under $10 million in revenue. However, it lacks suitability for large pharma companies or those requiring extensive manufacturing capabilities. Without significant updates recently in its portfolio, it still maintains its rank at #10 on our top pharma ERP systems list.

Strengths:

Deep Last-Mile Capabilities for Pharma Companies. The biggest strength of Blue Link ERP would be its last-mile functionality. These capabilities include suspicious drug monitoring, CSOS and ARCOS reporting, and TI/TS/TH transmission via EDI.
DSCSA Compliance Subject Matter Expertise. The other strength of Blue Link ERP includes its subject matter expertise and its involvement with the DSCSA community. It also includes continuous updates of their product as regulatory compliance changes regarding the data elements.
Decent Technical Architecture. The final strength of Blue Link ERP would be its technical architecture, especially when you compare it with the other products in this category. For example, comparable products use a file-based database. However, Blue Link ERP contains a Microsoft SQL Server database.

Weaknesses:

Not Suitable for Pharma Manufacturers. Pharma companies that need heavy manufacturing capabilities and distribution might find it limiting.
Smaller Ecosystem and Publisher’s Financial Position. The other weakness of Blue Link ERP includes a smaller talent ecosystem. It also includes its financial standing as it is not backed by a private equity firm or a corporate investor.
Only Suitable for Smaller Pharma Companies. Blue Link ERP is not meant for companies that will be in revenue of over $10 million.

9. SAP S/4 HANA

SAP S/4 HANA caters to larger pharma enterprises, excelling in the large enterprise segment or adopting a best-of-breed approach for diversified capabilities. Its key strength is accommodating various global pharma business models within one database, but it may lack deep last-mile capabilities, relying on ISV solutions or elongating implementation times. While this reliance can be cost-prohibitive for SMB pharma companies, it aligns with the best-of-breed architecture needs required by large pharma companies, essential for transactional decoupling and accommodating diverse departmental needs. Despite these considerations, it maintains its position at #9 on our list of the top pharma ERP systems.

Strengths

Superior Financial Control and Governance for Large Pharma Companies. Superior financial traceability and the SOX compliance support required for large, publicly traded companies.
Ability to Support Diversified Business Models. Supports diversified business models whether you are a re-packager, assembler, dispenser, medical device, drug manufacturer, or any of their combinations.
Solid Best-of-Breed Options. The availability of best-in-class, best-of-breed products such as CallidusCloud for CPQ, SAP EWM for warehouse and TMS capabilities, and SAP Hybris for e-commerce for larger pharma companies.

Weaknesses

Limited Last-mile Functionality for DSCSA compliance. Limited last-mile functionality for DSCSA compliance, which might be pre-packaged with the smaller specialized pharma ERP systems on this list.
Overbloated Financial Control Processes. Overbloated financial control processes, such as compliance, allocation, and approval flows, are only necessary for large organizations.
Not Fit for Smaller and Mid-size Pharma Companies. The SMB pharma companies would find SAP S/4 HANA overwhelming and run the risk of implementation failure because of the efforts required to test and simplify the processes needed for smaller companies.

8. Oracle Cloud ERP

Oracle Cloud ERP, much like SAP S/4 HANA, targets larger pharma enterprises, excelling in the large enterprise segment or adopting a best-of-breed approach for diversified capabilities. Its strength lies in accommodating global pharma business models within one database, though it may lack deep last-mile capabilities, often relying on ISV solutions or extending implementation times. Unlike SAP S/4 HANA, Oracle Cloud ERP boasts higher penetration in the pharmaceutical verticals due to its existing install base with JD Edwards. The friendly data model and higher win rate make it a preferred choice. Aligned with the best-of-breed architecture, crucial for transactional decoupling, it secures its position at #8 on our list of the top pharma ERP systems.

Strengths:

Deep ERP Capabilities for Large Pharma Companies. Robust core ERP features such as international trade management and supply chain planning.
Talent Ecosystem and Well-adopted Product. It is one of the most adopted products and has very large communities of consultants to build custom pharma-specific functionality.
Ability to Support Diversified Business Models. Rich product model, and can natively support many distribution and manufacturing processes such as process or discrete.

Weaknesses:

Limited Last-mile Functionality for DSCSA compliance. Limited last-mile functionality for DSCSA compliance, which will require an add-on or custom development.
Overbloated Financial Control Processes. Overbloated financial control processes are needed for larger companies but might be overwhelming for smaller companies.
Not Fit for Smaller and Mid-size Pharma Companies. Finally, the SMB companies would struggle to relate to the product due to the over-bloated approval flows, allocation, commitment, and financial control processes.

7. Aptean ProcessPro

Aptean ProcessPro focuses on SMB process manufacturers, including the pharmaceutical sector, tailored for those with significant manufacturing needs. Ideal for companies with heavier manufacturing, it may not suit those with diversified business models, especially in private equity or holding company structures. However, it can serve as an effective subsidiary-level solution for large pharma companies, particularly if the subsidiary operates independently. Unsuitable for businesses with diverse manufacturing needs, it secures its position at #7 on our list of the top pharma ERP systems.

Strengths

Deep Process Manufacturing Capabilities. Including formulation management and batch manufacturing.
Financial Stability of a Private Equity Company. The financial backing of the publisher as it is backed by one of the largest private equity companies.
Deeper ERP Capabilities than Smaller Pharma ERP Systems. Much bigger product than some of these specialized ERP systems, such as Blue Link ERP or Deacom, with more profound manufacturing and supply chain capabilities similar to Netsuite, Acumatica, or Sage X3.

Weaknesses

Legacy Interface. Because it has not received the same attention in the Aptean portfolio as some other products, such as Aptean Ross.
Smaller Ecosystem. The adoption and the smaller ecosystems to get support for the product if you are not happy with the support provided by Aptean.
Last-mile Functionality for DSCSA Compliance Not as Strong. Finally, its DSCSA compliance capabilities may not be as strong as the specialized pharma ERP systems such as Blue Link ERP or Deacom.

6. SYSPRO

SYSPRO targets small food and beverage companies, Including smaller pharma distributors. Especially suitable for smaller pharma companies with diversified business models due to its native support for discrete and process manufacturing capabilities. Not as suitable for large pharma companies with multiple entities and a presence in multiple countries. It might be a great fit as a subsidiary-level solution for smaller entities if they are relatively independent in the holding company structure. Despite these considerations, it still maintains the rank at #6 on our list of the top pharma ERP systems.

Strengths

Support for Formulation Management Capabilities. Built as part of the product.
Ability to Support Diversified Business Models. Accommodates several different business models for smaller drug manufacturers, distributors, repackagers, or laboratories that might produce drugs and devices both.
Supply Chain and Finance Capabilities. Deeper supply chain and finance capabilities than its peers, including a robust unit of measure support, bin number capabilities, inventory valuation methods, and costing layers.

Weaknesses:

Only Suitable for Smaller Pharma Companies. Not a fit for larger companies with multiple entities and presences in multiple countries. Its design can’t allow data sharing between entities.
Limited DSCSA Compliance Functionality. Not as robust with its support for pharma-specific functionality, especially DSCSA compliance. As a result, it may require add-ons or custom development that might be prepackaged with pharma-centric ERP such as Blue Link ERP or Deacom.
Technical Issues with the Product. While the product has come a long way in moving away from a file-based data structure to a more reliable SQL-based data store, the users report errors with the product. And the product is not as mature as some of the other leading vendors on this list.

5. ECI Deacom

ECI Deacom targets small process manufacturing companies that might be eCommerce and DTC heavy with pharma being a key vertical for them due to its product alignment. Not the best fit for companies with revenue of more than $10 to $20 million due to its limited finance and ERP capabilities.Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But it still maintains the rank at #5 on our list of the top pharma ERP systems.

Strengths

Deep eCommerce and DTC Capabilities. E-commerce and DTC-related features built as part of the product, such as route accounting and proof of delivery.
Deep Last-Mile Capabilities for Pharma Companies. The pharma-specific capabilities that can support both distributors and manufacturers, such as master lot numbers, formulation and pre-formulation management, and weight measurement during the quality processes.
Financial Backing of Private Equity and Technical Architecture. Deacom has an SQL-based data store and a more modern interface.

Weaknesses

Only Suitable for Smaller Pharma Companies. Only suitable for smaller pharma companies with less than $20 million in revenue due to its limited financial and inventory control functionality.
Ability to Support Diversified Business Models. It’s primarily a process manufacturing product and would struggle with companies that may require both discrete and process manufacturing support.
Weaker Supply Chain and Finance Capabilities. While the operational and e-commerce capabilities are strong with Deacom, the Supply Chain and finance capabilities are weaker with limited pricing and discounting options, inadequate UoM support, and leaner costing layers for larger pharma companies.

4. QAD

QAD targets upper mid-large pharma manufacturing companies. Especially suitable for companies with the need for deeper operational functionality than the larger products such as SAP S/4 HANA or Oracle Cloud ERP. Not so suitable for the smaller pharma companies as they will find it overwhelming. Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But it still maintains the rank at #4 on our list of the top pharma ERP systems.

Strengths

Ability to Support Diversified Business Models. QAD’s data and product model allow it to serve various pharma industries with the combination of discrete and process manufacturing business models such as drug, device, and diagnostic tests.
Process Manufacturing Capabilities. Includes process and discrete manufacturing capabilities, which is an advantage compared to other similar products.
Rich ERP Capabilities to Support Mid- to Large- Pharma Companies. Has deep international trade management and Supply Chain capabilities, which gives QAD an edge over its larger peers as QAD will have deeper operational functionality for pharma along with these capabilities geared for larger manufacturing companies.

Weaknesses

Technical Architecture. It still uses a legacy programming language and is not hosted on mainstream cloud providers’ infrastructure, so finding support for QAD could be a concern.
Primarily Targeted for Discrete Manufacturing Verticals. QAD is a discrete manufacturing product, even though it targets process manufacturing. So, the pharma manufacturers and distributors may not receive as much attention from QAD as discrete manufacturers.
Talent Ecosystem. The talent ecosystem is not as prolific as SAP S/4 HANA or Oracle ERP Cloud. And because of that, you might struggle to find support if you are not happy with the support from QAD.

3. Microsoft Dynamics 365 Business Central

MS Dynamics 365 BC targets SMB pharma distributors. And it’s especially suitable for pharma companies that require depth in supply chain and distribution processes, along with the platform’s flexibility to build last-mile functionality. However, it’s not suitable for larger companies or pharma manufacturers as it does not have the formulation management capabilities to support process manufacturing. Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But we have upgraded the rankings of MS BC substantially this year due to the quality of add-ons available to support the pharma industry. And now it ranks at #3 on our list of the top pharma ERP systems.

Strengths

Availability of several add-ons with deep pharma capabilities. The biggest plus for MS BC is its ecosystem and add-ons from highly credible companies that could provide similar capabilities as Blue Link ERP or Deacom.
Native support of packaging serial numbers with lot numbers. MS BC offers a rich data model with capabilities such as support for multiple lots and serial numbers to support the scenarios of NDC and packaging serial numbers.
Deep supply chain and bin allocation capabilities. MS BC has native capabilities to support pharma distributors with multiple warehouses, centralized and decentralized supply network needs, multiple hierarchies of bins, and rich UoM support.

Weaknesses

It would require an add-on for DSCSA compliance. It would require an add-on or custom development for DSCSA compliance, such as suspicious drugs or TS/TI/TH reporting.
Does not have native support for formulation management. MS BC doesn’t natively support formulation management, a severe limitation for pharma distributors heavy in R&D and production.
Not suitable for pharma manufacturers. Limited manufacturing capabilities with lighter assembly-centric manufacturing.

2. Microsoft Dynamics 365 Finance & Operations

Like Oracle ERP Cloud, Microsoft Dynamics 365 Finance and Operations targets larger pharma companies with revenue over a billion dollars and 1,000 employees. It is not suitable for smaller to medium-sized manufacturers and distributors. Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But we have upgraded the rankings of MS Dynamics 365 F&O substantially this year due to the quality of add-ons available to support the pharma industry. And now it ranks at #2 on our list of the top pharma ERP systems.

Strengths

Deep ERP Capabilities for Large Pharma Companies. First, it is among the largest ERP products and has deep core ERP capabilities like SAP S/4 HANA and Oracle Cloud ERP, with a large majority of functionalities available in its cloud version.
Ability to Support Diversified Business Models. Second, F&O has a rich product model to support diversified manufacturing and distribution businesses, including process and discrete manufacturing capabilities needed for larger pharma companies with several divisions with different focuses.
Pre-integrated Best-of-breed Options. Finally, the F&O product also comes pre-packaged and pre-integrated with the MS Dynamics 365 CRM, known for its tight data model and transactional data integrity to support the territory planning for controlled substances.

Weaknesses

Limited Last-mile Functionality for DSCSA Compliance. Might require an add-on or custom development to support pharma-specific compliance and regulatory processes.
Overbloated Financial Control Processes. Overbloated financial control processes, such as compliance, allocation, and approval flows, which are only necessary for large organizations.
Not Fit for Smaller and Mid-size Pharma Companies. Finally, SMB pharma companies would find the product overwhelming and run the risk of implementation failure because of the efforts required to test and simplify the processes needed for smaller companies.

1. Sage X3

Sage X3 targets upper-mid to large pharma companies with less than $1B in revenue that seek a replacement for other larger products due to their weaker operational support and overwhelming workflows. Not as suitable for the smaller pharma companies that will have revenue under $50 million or the larger companies with a presence in more than 10-15 countries. Recent updates? No relevant announcement that will directly benefit companies in the pharma industry. But it still maintains the rank at #1 on our list of the top pharma ERP systems.

Strengths

Great Alternative for Large Pharma Companies. Designed for process and food and beverage manufacturing and distribution. As a result, it provides far deeper functionality for large pharma companies out of the box.
Designed for Process and Food Manufacturing Companies. Its product and operational processes are designed for process manufacturing companies with deep support for features such as product families.
Great Ecosystem of Consultants for Pharma Validation. The ecosystem includes consulting companies with deep expertise in the Sage X3 product and validation procedures.

Weaknesses

DSCSA Compliance May Require Additional Efforts. The pharma-specific capabilities might not be as robust as pharma-specific ERP systems.
Not Suitable for Smaller Pharma Companies. Its design could be overwhelming for very small pharma companies. It might not get as much value due to the configuration and integration requirements.
Limited Pre-integrated Best-of-breed Options. Limited best-in-class best-of-breed options as SAP S/4 HANA or Microsoft Dynamics 365 F&O for additional capabilities that larger companies would require.

Conclusion

Pharma companies have involved operations and reporting needs, requiring ERP systems that have native support for the data model to meet the changing regulatory requirements. The ERP systems and vendors that don’t have pharma as their primary vertical would not be able to catch up with these demands and might require you to develop them yourselves.

Due to the financial and implementation risks associated with the development efforts, you need an ERP system designed to support most pharma processes natively. So, make sure that the ERP system you choose is designed for the pharma industry. Hopefully, this list, along with the expertise of independent ERP consultants, can help you narrow down some options.

FAQs

How are pharma ERP systems different from MedTech?

Most pharma companies follow manufacturing processes similar to food and process manufacturers due to the nature of their business. However, while the MedTech and pharma businesses are closely related and may have similar regulatory and compliance needs, they are very different businesses operationally. And because of this issue, the need for their ERP systems is different.

How are pharma ERP systems different from vanilla ERP systems?

The data model requirement of a pharmaceutical company is very different from other industries as the item may have several layers of hierarchies that might be extremely difficult in a vanilla ERP system. For example, pharma companies require BOTH a lot and serial numbers for an item, which is impossible with several small ERP systems.

Which ERP system does a company need if it produces pharmaceutical compounds and medical devices?

If your business model includes both pharma and medical device manufacturing processes, your operational complexity is greater than most life sciences businesses. And you will need an ERP system that can support processes and discrete manufacturing. In addition, depending on how your revenue is segmented between pharma and med device, you might need to choose an ERP system that has superior planning capabilities to support the significant revenue driver while supporting both business models.

Top 10 Medical Device ERP Systems in 2024

Leave a Comment / Blog, ERP, Life Sciences / By Sam Gupta / May 28, 2022 March 17, 2025

The medical device industry has unique ERP needs, spanning consumable and large CapEx equipment segments. The laboratory segment, positioned in between, demands specialized integration like LIMS. Contract manufacturers handle diverse needs and support processes across multiple industries. Consulting companies within the medical device industry may share professional service processes but have distinct ERP requirements. Processes and regulations vary based on diagnostic or surgical use. Consumables align with make-to-stock, emphasizing robust distribution and eCommerce integration. Large machines reflect engineering-to-order processes, requiring support for extensive programs, field services, and both make-to-stock and make-to-order processes for consumables. Additional complexity arises from drug-centric processes, heightening ERP considerations for each device type.

Apart from pre-built compliance processes, ERP systems tailored to the medical device industry vary in terms of supported business processes, transaction volume, and operational scope—be it local or global. Those supporting global process integration may prioritize diversified business models, which is crucial for companies within PE portfolios or holding structures. The sector faces heightened scrutiny, with investors demanding comprehensive reporting, even for pre-revenue companies. Implementing systems to support reporting needs efficiently becomes imperative to minimize administrative overhead.

Key features encompass electronic signatures and device history records, sharing similarities with aerospace and automotive industries but with added constraints for medical device companies. Validation requirements, like software validation with each change, exhibit variability. CRM processes encounter complexities due to diverse market timelines affecting quoting. This overview merely scratches the surface of essential features for medical device companies. Excited to delve into ERP systems tailored for this industry? Let’s navigate the top 10 medical device ERP systems.

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Criteria

Definition of a medical device company. These are the medical device ecosystem companies, including large medical equipment manufacturers, consumable manufacturers, diagnostic companies, and CROs. The list considers companies of all sizes in this ecosystem.
Overall market share/# of customers. The higher the market share among medical device companies, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap for the medical device companies, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with a heavy presence from medical device companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Medical device company market share. The higher the focus on medical device companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with medical device companies. The more aligned the acquisitions are with the medical device companies, the higher it ranks on our list.
User Reviews. The deeper the reviews from medical device companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. SYSPRO

SYSPRO is designed for SMB medical device companies, particularly those in consumables or diagnostic segments, aligning well with distribution and commerce-centric industries. Ideal for complex consumable devices, SYSPRO supports both discrete and process industries, with a focus on food-centric sectors. However, it may not suit devices requiring engineer-to-order or field service-centric processes. SYSPRO can be a suitable solution for small subsidiaries operating fairly independently. Resembling SAP in feel and featuring solid finance and distribution capabilities, SYSPRO maintains its #10 position on our list of top medical device ERP systems.

Strengths

Inventory and supply chain capabilities. Its strengths for medical device companies include its substantial inventory and supply chain capabilities.
Medical device quality requirements. The other bonus points for SYSPRO include its ability to support electronic signature capture, CAD integration, and detailed audit trails of the transactions critical to support FDA 21 CFR 11 and GMP requirements.
Native support for process manufacturing capabilities. Finally, the other plus point for SYSPRO would be its native support for process manufacturing capabilities. These features will be helpful for companies such as contract research organizations or laboratories that might develop drugs along with devices.

Weaknesses

Fit for companies with one legal entity. Designed primarily for smaller manufacturing facilities with one legal entity.
Limited manufacturing capabilities. Deeper manufacturing features, such as line-level backflushing for both material and operations and Kanban, would be a challenge.
Not a fit for large capital equipment medical device manufacturers. Not designed for complex capital equipment devices such as radiology or cancer machines.

9. Rootstock

Tailored for smaller discrete medical device manufacturers, Rootstock is optimal for companies in the $10-$100 million range, especially those heavily reliant on Salesforce. Well-suited for large CapEx machinery with robust processes, including CPQ, project management, and field services, it is suitable for handling consumables associated with such machinery. However, it may not be the ideal choice for devices packaging drugs with their assembly. Not a potential subsidiary solution for pharma companies or research centers focused on CapEx equipment, Rootstock’s limited business process diversity makes it less suitable for large companies with varied models. Despite a limited install base, its popularity in the cloud-native segment earns it the #9 rank among medical device companies on this list.

Strengths

Native Integration with Other Salesforce Products. Such as Salesforce CRM and Field Service. As well as Salesforce CPQ and commerce are especially strong for medical device companies that care for enterprise-grade territory management and customer experience.
Cloud-native Mobile Capabilities. Inheriting native mobile capabilities from the Salesforce platform, it is strong with native cloud mobile capabilities. Its WMS mobile capabilities, such as cross-docking and license plate numbers, are especially attractive.
Mixed-mode Manufacturing Capabilities. Finally, its strength includes mixed-mode manufacturing capabilities, with the exception of process manufacturing capabilities.

Weaknesses

Finance and Accounting. Rootstock started as the MRP solution and relied on other accounting solutions. They have recently developed accounting capabilities, which are not as strong as other products on this list.
Reliance on Third-part Quality Module. Relying on other solutions in the Salesforce ecosystem, such as ComplianceQuest, Rootstock does not own a quality module.
Smaller Ecosystem. The ecosystem is relatively small for rootstock, with less than 500 installations. This could pose a risk in finding talent for future support and customizations.

8. Deacom

Deacom focuses on smaller process-centric pharma companies, emphasizing commerce over discrete-centric or large devices. It excels as a solution for diagnostic, drug, and smaller consumable devices with a strong commerce focus. While Deacom integrates various enterprise software categories like quality management and compliance, its core ERP layers have flat models, requiring ad-hoc arrangements and posing challenges with batch-centric capabilities. Ideal for companies prioritizing transactional capabilities, it may not suit those seeking mature ERP functionalities. Despite these considerations, it retains the #8 rank among top medical device ERP systems.

Strengths

Technology. Deacom’s strengths for medical device manufacturers include its technology, which has a modern interface and an SQL database. The other products in this category typically rely on file-based databases.
Process Manufacturing Capabilities. The other plus points for Deacom would be the capabilities for medical device companies that are more of a drug/chemical company than a device company.
Track and Trace and Route Accounting. Finally, its strength would also be in its native capabilities for track and trace and route accounting capabilities for medical device companies distributing fast-moving goods such as sanitizers or surgical masks on their vehicles.

Weaknesses

Not a Discrete Manufacturing Product. It will struggle with companies requiring complex discrete manufacturing features such as CAD integration or multi-layered BOMs with thousands of components with change orders.
Fit for Fast-moving Consumable Products. its native design is deficient for large capital equipment manufacturers as its costing and BOM capabilities will be extremely limited for them.
Limited Finance and Supply Chain Management Capabilities. Limited finance and supply chain capabilities, such as complex UoM, deep pricing and discounting support, and 1.N capabilities as they relate to the orders, shipments, and invoices.

7. Oracle Cloud ERP

Oracle Cloud ERP targets large, global medical device manufacturers with revenues generally exceeding $1 billion, offering consolidation in a unified database for diverse business models. Ideal for companies with varied entities, including commerce, consumables, large capital equipment, medical device consulting, contract manufacturing, and subsidiaries of hospitals or research centers. Though lacking last-mile capabilities for these models, it provide foundational ERP layers, minimizing the need for additional systems. While suitable as a corporate financial ledger, it may not be the optimal choice as a subsidiary solution. Despite these nuances, it holds the seventh position in our list of top medical device ERP systems.

Strengths

Core ERP capabilities. One of the largest ERP solutions in the market, with deep capabilities in supply chain and logistics, is provided as part of the core solution.
Diverse, global capabilities. The ability to support multiple business models in one solution globally located.
Financial control and public company capabilities. Financial control capabilities are required for larger and public companies, such as SOX compliance, financial traceability, and month-end close collaboration across entities.

Weaknesses

Medical Device Last-Mile Functionality. Limited last-mile functionality applicable for medical device manufacturers, such as device history records, reporting for FDA 21 CFR 11 and GMP, and electronic signature and skill certification processes embedded with each operational step.
Longer Configuration and Customization Time. Longer time in customizing and configuring as the software design may consist of unnecessary allocation, commitment, and approval functionality for large companies.
Not as Relatable for Plant Level Employees. Finally, the product may appear bloated for plant-level employees due to the missing operational perspective. Also, enabling this perspective may require unnecessary development and testing time.

6. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance & Operations targets large, global medical device manufacturers in the upper mid or lower enterprise market. Ideal for companies with varied entities, including commerce, consumables, large capital equipment, medical device consulting, contract manufacturing, and subsidiaries of hospitals or research centers. Although lacking last-mile capabilities for these models, it provides foundational ERP layers, minimizing the need for additional systems. While suitable as a corporate financial ledger, it may not be the optimal choice as a subsidiary solution. Despite these nuances, it holds the 6th position in our list of top medical device ERP systems.

Strengths

Core ERP Capabilities. Its strength includes the core ERP capabilities such as native support for mixed-mode manufacturing, including deep process manufacturing such as formulation management, catch weight management, approvals, and commitments.
Best-of-breed Capabilities. Its strength also includes its best-of-breed capabilities with applications such as pre-integrated CRM and field service components.
Technical Architecture. The technical architecture includes integration with other Microsoft products, such as Logic Apps and Azure Data Factory, allowing them to isolate their infrastructure for validation requirements.

Weaknesses

Medical Device Last-Mile Functionality. Its weaknesses include limited last-mile functionality applicable for medical device manufacturers, such as device history records, reporting for FDA 21 CFR 11 and GMP, and electronic signature and skill certification processes embedded with each operational step.
Customizability. Since MS products are highly technical and customizable in nature, it could pose control issues for companies if developers over-customize these products with limited visibility for financial executives.
Implementation Control. Since Microsoft sells licenses in the OEM setting with a limited governance process in place, buying these products from unqualified resellers fires back and may lead to ERP implementation failure.

5. SAP S/4 HANA

SAP S/4 HANA targets large, global medical device manufacturers with revenues generally exceeding $1 billion, especially friendly for publicly traded companies with one of the best transactional traceability for globally complex and highly regulated medical device companies. Though lacking last-mile capabilities for these models, it provide foundational ERP layers, minimizing the need for additional systems. While suitable as a corporate financial ledger, it may not be the optimal choice as a subsidiary solution. Despite these nuances, it holds the 5th position in our list of top medical device ERP systems.

Strengths

Superior Financial Control and Governance. Its strength includes the inbuilt visual workflow for each financial transaction, superior change control of the ERP configurations, and SOX compliance approval flow.
Product Model Designed to Support Various Manufacturing. SAP’s product model is rich and supports various configurations, including mixed-mode manufacturing.
Best of breed solutions. Several solutions, including SAP Hybris for e-commerce for medical device companies and Callidus Cloud for CPQ. SAP also has a robust WMS and TMS solution packaged as part of SAP EWM and SuccessFactors for HCM capabilities.

Weaknesses

Integration Challenges with Best-of-breed Solutions. While SAP S/4 HANA has one of the best best-of-breed solutions, they might not be as pre-integrated as other solutions.
Overbloated Customizations and Controls for Smaller Organizations. As with other larger products on this list, the controls provided as part of the product may feel unnecessary and overwhelming for smaller companies. In addition, they may add additional development and testing time to disable them.
Last-mile Medical Device Manufacturing Capabilities. Last-mile medical device manufacturing functionality such as FDA reports, 21 CFR 11, and device history records functionality would require expensive customizations.

4. Infor CloudSuite Industrial

Infor CloudSuite Industrial targets small to mid-sized medical device manufacturers. While a great mixed-mode manufacturing solution, it suffers from several deficiencies, requiring ad-hoc arrangements, such as WBS processes not being as detailed, MRP being limited with attribute level planning, and distribution planning not being friendly for commerce-centric companies. It could be a great fit as a subsidiary solution for large medical device companies or as the main ERP for smaller medical device companies. Given these considerations, it ranks at #3 on our list of the top medical device ERP systems.

Strengths

Designed from the Perspective of OEMs. Supports serializable units composed of other serialized components to provide a complete view of the device history.
Quality Module Owned and Pre-Integrated. The quality module is deeply integrated and maintains a separate inventory for the quality-controlled components with deep coverage for in-process quality.
Strong Field Service Capabilities. When several players may be involved in the sales and service transactions, including the scheduling of internal or external resources. As well as share compensation depending upon the level of effort from all parties involved.

Weaknesses

Poor UX and Legacy Feeling. The interface is not as cloud-native as some of its legacy counterparts, with critical limitations such as advanced search capabilities.
Not Suitable for Distribution-centric Medical Device Manufacturers. The product design is limited for manufacturers. However, the distributors that perform lighter manufacturing but may have deeper distribution needs, such as Supply Chain network planning or decentralized warehouse architecture, may struggle with the product.
FDA- and Medical Device-Specific Regulatory Capabilities Not as Strong. Its weaknesses also include the efforts required in developing regulatory compliance reports and capabilities needed for medical device manufacturers.

3. Epicor Kinetic

Epicor Kinetic caters to small to mid-market discrete medical device manufacturers, particularly those specializing in CapEx manufacturing with WBS-centric processes. It is well-suited for companies with complex inventory management, where devices may serve multiple indications, requiring planning at the product attribute level. The product’s robust distribution-centric planning is also friendly for commerce-centric medical device companies. While an excellent choice for smaller companies or as a subsidiary solution for larger firms, its limited support for financial layers may hinder scalability for larger enterprises. Despite these considerations, it maintains its position at #3 on our list of top medical device ERP systems.

Strengths

Mixed-mode manufacturing capabilities. The product model can accommodate several manufacturing processes for discrete manufacturers, such as Kanban, configure-to-order, make-to-order, and make-to-stock.
UX Experience. While legacy, the UX experience is superior in the cloud today, with support for more complex cloud-native features such as the advanced search for data or forms.
Last Mile Medical Device Capabilities. Its strength also includes the last-mile functionality for medical device manufacturers, such as electronic signature support through MES and track and trace capabilities starting from raw material through post-sale.

Weaknesses

Limited financial layers. Epicor Kinetic is designed for small to medium companies to support only three layers of financial hierarchies. More than three layers of hierarchies may need ad-hoc arrangements.
Third-party quality module. Its weakness also includes its reliance on the third-party quality module, limiting the tighter integration of the quality processes that medical device manufacturers need.
Embedded field service experience. For CapEx device manufacturers require embedded and traceable field services processes with the core manufacturing processes because the field services capabilities were part of an add-on that Epicor just bought.

2. Sage X3

Sage X3 focuses on the upper mid-market and lower enterprise sectors, making it a strong choice for publicly traded companies or those requiring robust financial control. It excels as a financial ledger for larger enterprises or as the primary ERP for smaller companies, particularly in regulated industries. Despite its effectiveness, Sage X3 faces challenges in gaining momentum due to Sage’s primary focus on accounting firms serving SMBs. Consequently, it may not receive as much attention as other products in Sage’s portfolio. While slightly downgraded this year, it maintains its position at #2 on our list of top medical device ERP systems.

Strengths

Process manufacturing capabilities. Its strength includes process manufacturing capabilities for companies such as laboratories and drug-like products instead of hardware devices.
Deep finance and supply chain capabilities. Its strength also includes deep finance and supply chain capabilities, and the product is designed from the CFO’s perspective. This is helpful for large companies that need superior financial control and last-mile process manufacturing capabilities.
Multi-entity Capabilities. Its strength also includes multi-entity capabilities that might not feel as natural with other focused products on this list.

Weaknesses

Discrete manufacturing capabilities. Sage X3 has discrete manufacturing capabilities, but these capabilities may not be robust for complex equipment manufacturers.
Third-party MES. Sage X3 does not have a pre-integrated OEM-owned MES component and would require integration and additional testing with third-party solutions with the legal and implementation risks due to multiple vendors involved.
Last-mile medical device manufacturing capabilities. The last-mile medical device manufacturing capabilities would require additional development and testing, increasing the costs and risks for ERP implementation.

1. QAD

QAD caters to the upper, mid-market, and lower enterprise sectors, providing a robust solution for companies prioritizing integrated supply chain components, particularly in planning and collaboration, complemented by comprehensive ERP layers. The suite includes several integrated components like PLM, making it ideal for companies with intensive product management processes. QAD serves well as a subsidiary solution for larger enterprises using SAP or Oracle for their corporate financial ledger or as the primary ERP for smaller companies. With the recent announcement of a technology upgrade, it has been upgraded slightly, securing the top position on our list of top medical device ERP systems.

Strengths

Supply chain perspective. Designed from the perspective of the Supply Chain and is probably the only mid-market product with deeper transportation management. As well as international trade management capabilities.
Last mile medical device capabilities. The last mile medical device capabilities include automated quality management, serialization in support of unique device identification (UDI), the Drug Quality and Security Act (DQSA), and the Falsified Medicine Directive (FMD).
Mixed-mode manufacturing capabilities. It has native discreet and process manufacturing capabilities and forward and backward recall traceability.

Weaknesses

Ecosystem. QAD is not as well adapted as some other products on the list and does not have as prolific a VAR ecosystem as Microsoft, SAP, or Oracle.
Technology and underlying technical architecture. While QAD has announced that they plan to modernize their technology, it might take a few years before the new platform becomes stable.
Not a great fit for companies developing large complex capital equipment. While the product has mixed-mode manufacturing capabilities, it’s not meant to support large complex capital equipment manufacturers’ products with thousands of dependent components and sub-assemblies.

Conclusion

Given the stringent FDA compliance and quality requirements, medical device companies have intricate operations. Comprehensive CPQ capabilities are essential for controlling the global release process of equipment. When developing combinations of drugs, devices, or consumables with capital equipment, mixed-mode manufacturing capabilities become crucial.

Choose an ERP system designed to seamlessly support most medical device processes. Utilizing an ERP system not specifically tailored for the medical device industry may lead to substantial customizations and unnecessary testing for configurations packaged with other ERP systems. Ensure your chosen ERP system is purpose-built for the medical device sector, and let this list guide you in narrowing down your options. Consulting independent ERP experts can further enhance your decision-making process.

FAQs

How are medical device ERP systems different from other vanilla ERP systems?

The medical device ERP systems prepackage the last-mile functionality required for medical device manufacturers and distributors. By contrast, the vanilla ERP systems would require substantial configuration, customizations, and testing, which increases the costs and technical risk of the ERP implementation.

Can a system designed for the life science industry be sufficient for the medical device industry?

The life science industry consists of several micro-verticals, which have different needs for an ERP system. For example, the system designed for the pharmaceutical industry would not be a right fit for the medical device industry as the medical device would follow discrete manufacturing processes, whereas pharma would be process manufacturing. Similarly, diagnostic laboratories may have discrete or process manufacturing methods depending upon the type of devices being manufactured.

Do medical device distributors have different needs for an ERP system than medical device manufacturers?

Yes, medical device distributors have very different quoting processes, levels of inventory, UoMs, and supply chain networks than manufacturers. They might also have lighter assemblies and quality of the incoming products than medical device manufacturers. On the other hand, medical device manufacturers have multiple layers of sub-assemblies with their BOMs. They would require a much tighter collaboration of their engineering, quality control, and manufacturing.

Top 10 Aerospace and Defense ERP Systems in 2024

Leave a Comment / Aerospace & Defense, Blog, ERP / By Sam Gupta / May 8, 2022 March 17, 2025

Aerospace and defense industries face unique challenges due to stringent quality and regulatory requirements. Unlike consumer-driven automotive sectors, A&D operates with long sales cycles and uncertainties, making supply chain planning intricate. The custom nature of A&D products, coupled with formal revision tracking, adds complexity, necessitating ERP systems with unique BOM structures. While collaboration with local suppliers has its own challenges, international supplier collaboration dictates trade compliance requirements at another level because of national security and geopolitical issues.

Equally challenging are manufacturing processes that vary per business model, requiring solutions tailored to each. While some ERP systems suit plastic manufacturers serving A&D OEMs, others offer versatility for diverse global business models. Despite looser margin requirements in A&D compared to automotive, stringent quality standards can impact margins. Highly engineered aerospace parts demand precise vendor collaboration and time sensitivity to avoid supply chain disruptions.

A&D companies engage in extensive pre-sales processes, involving multiple stakeholders and proofs-of-concept during R&D. This uniqueness underscores the need for ERP systems with built-in engineering and pre-sales workflows to support contract requirements. Some business models might require access to proprietary databases, integration with industry systems, and compliance requirements related to the upkeep of processes. Choosing an ERP system for the A&D industry requires a deeper study of business models and transactions, as generic solutions may necessitate significant investments in longer implementation cycles, which might be out of the range of most SMB companies. Find out which ERP systems are designed to meet the distinctive needs of the A&D sector.

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Criteria

Definition of an aerospace and defense company. These are the companies in the A&D ecosystem, including OEMs, manufacturers, and distributors. The list considers companies of all sizes in this ecosystem.
Overall market share/# of customers. Higher market share among aerospace and defense companies ranks higher on our list.
Ownership/funding. The more committed the management to the product roadmap for the A&D companies, the higher it ranks on our list.
Quality of development: More cloud-native capabilities rank higher on our list.
Community/Ecosystem. The larger the community with a heavy presence from aerospace and defense companies, the higher it ranks on our list.
Depth of native functionality for specific industries. Deeper publisher-owned out-of-the-box functionality ranks higher on our list.
Quality of publicly available product documentation. Poorer product documentation ranks lower on our list.
A&D company market share. The higher the focus on aerospace and defense companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
The acquisition strategy is aligned with aerospace and defense companies. The more aligned the acquisitions are with the aerospace and defense companies, the higher it ranks on our list.
User Reviews. The deeper the reviews from aerospace and defense companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. IQMS/DELMIAWorks

IQMS, tailored for plastics-centric operations in the aerospace and defense ecosystem, stands out with last-mile capabilities and depth in aerospace compliance. Well-suited for A&D firms supplying plastic components to tier 1 and tier 2, it may not address the intricacies of operations in OEMs or tier 1 companies. The native support for ITAR certifications adds to its appeal. However, its weaknesses become apparent when considering larger A&D companies engaged in complex aerospace projects, contributing to its placement at #10 on our list of top aerospace and defense ERP systems.

Strengths

Great for plastic manufacturers supplying to aerospace. While limited in its suite, capabilities for plastic-centric industries outshine when it comes to unique scheduling requirements.
Best for aerospace and defense companies on SolidWorks. With the same company as SolidWorks owning it, tighter and seamless integration of both products, which are built and maintained by the same vendor, is a huge plus.
Technology – This is probably the most legacy solution of all on this list, with no announcement if they plan to modernize the technology.

Weaknesses

Limited focus. The limited focus might be a challenge for aerospace and defense companies diversifying their operations and being active with M&A cycles.
Limited ecosystem. The consulting base is extremely limited with most resellers being CAD resellers, with limited experience in ERP implementation and cross-functional processes.
It is not the right fit for holding and private equity companies as a corporate ledger. While a great subsidiary solution and a solution for pure-play plastic-centric manufacturers for SMB aerospace and defense companies, it’s not the best fit for diverse A&D companies as their main ERP solution.

9. Deltek

Deltek, tailored for government contractors in the A&D sector, excels in project-centric organizations. It suits A&D companies that are heavily reliant on government revenue. However, its narrow focus poses challenges for firms equally involved in commercial and government sectors or those with diverse business models like field service and manufacturing.

Despite strengths, Deltek exhibits weaknesses in CRM capabilities, limiting suitability for organizations with extended sales cycles and collaboration needs. Manufacturers or distributors targeting government sectors may find their manufacturing and distribution capabilities lacking. Nonetheless, Deltek maintains its prominence for project-driven government A&D contractors, securing the #9 rank on our list of top aerospace and defense ERP systems.

Strengths

Last-mile capabilities for GovCon for A&D contractors. The GovCon functionality is intricate, requiring subject matter expertise and driving longer implementation time without Deltek’s pre-baked functionality.
Access to the databases and networks relevant to these industries. Deltek has access to quoting databases and industry data, making it a very strong ERP system for companies in the A&D sector.
Multi-entity capabilities. Their multi-entity capabilities are rich, making them suitable for upper mid-market and lower enterprise companies to host all of their entities in one database.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for enterprise companies active with M&A cycles, especially for business models outside of Deltek’s expertise.
Limited ecosystem and consulting base. As of today, their ecosystem and consulting base is significantly limited.
Not as complete ERP capabilities as part of the suite. Most of the ERP products in Deltek portfolio are not as complete as other solutions on this list, requiring integration and external systems for missing capabilities.

8. Rootstock

Rootstock caters to engineer-to-order centric SMBs in the A&D sector, offering robust mobile-native capabilities atop the Salesforce platform. Particularly fit for smaller A&D companies with heavy usage of the Salesforce platform for their CRM and field service solutions, it might also fit as a subsidiary solution for some entities that might be heavier users of Salesforce and might prefer a unified user experience across the enterprise. Given these considerations, Rootstock ranks at #8 on our list of top aerospace and defense ERP systems.

Strengths

Native integration with other salesforce products. Its strength Includes native integration with other Salesforce products such as Salesforce CRM and Field Service. This is especially beneficial for A&D companies with longer sales cycles with multiple stakeholders and parties collaborating during the pre-sales phase.
Cloud-native mobile capabilities. Inheriting native mobile capabilities from the Salesforce platform, it is strong with native cloud mobile capabilities.
WBS-centric manufacturing capabilities. While Rootstock might not be as strong with all modes of manufacturing as some of the other solutions on this list, it is especially strong in project-centric manufacturing with detailed WBS and milestones spanning over months.

Weaknesses

Finance and Accounting. Rootstock started as the MRP solution and relied on other accounting solutions. Their accounting capabilities are not as layered and scalable, requiring ad-hoc arrangements.
Reliance on Third-part Quality Module. With quality processes embedded at each step, using a third-party quality module might not provide as immersive an experience as products that have quality baked into their processes.
Smaller Ecosystem. The ecosystem is relatively small for rootstock, with less than 500 installations. This could pose a risk in finding talent for future support and customizations.

7. Infor CloudSuite Industrial

Infor CloudSuite Industrial caters to SMB A&D manufacturers with short-run jobs and deep layers of sub-assemblies, with or without formal product management or engineering processes.

Its embedded quality processes are especially friendly for A&D companies since centralized quality management across processes, including procurement, production, and customer services, is required for traceability and reporting. Limited operational WBS support and BOMs without dates may pose challenges for A&D companies with extended lead times. Despite these considerations, Infor CloudSuite Industrial maintains its #7 rank on our list of top aerospace and defense ERP systems.

Strengths

Support for both informal and formal BOMs and engineering processes. Infor CSI BOMs don’t mandate revision numbers, making it easier for A&D companies without formal products to implement their BOMs.
Deep Costing Layers. Compared to other products with patchy experience, the costing layers follow superior rational structure and scale well, where tracking costs for large programs such as A&D might be critical.
Field service integration with core manufacturing processes. Especially critical for A&D suppliers that collaborate with their OEMs in the post-sales phase, with multiple parties involved for servicing, internal or external, containing complex commission structures.

Weaknesses

Not fit for diverse A&D manufacturers. A&D manufacturers that might also be heavy in process-centric operations might struggle with it.
Not for A&D manufacturers but also heavy in distribution. Infor CSI suits pure-play manufacturing organizations with limited support for distribution planning and operations.
Not strong for WBS-centric manufacturing. Long-standing programs spanning multiple months require detailed WBS-centric capabilities to support both operational and financial activities as part of the project, critically important A&D OEMs.

6. Oracle Cloud ERP

Targeting large global A&D companies, Oracle Cloud ERP offers diverse solutions for complex business models. Ideal fit for large A&D companies as a corporate financial ledger while using focused solutions such as Infor LN, IFS, or Deltek at the subsidiary level. Using it as the main ERP and building last-mile A&D companies might require substantially longer implementation cycles, rendering them cost-prohibitive for SMB companies. Given these considerations, Oracle ERP Cloud maintains its #6 rank on our list of top aerospace and defense ERP systems.

Strengths

Ideal solution for publicly traded large global A&D companies. Oracle Cloud ERP is an ideal solution as the corporate financial ledger for A&D companies with multiple layers of financial hierarchies operating in multiple countries.
Proven solution with large workloads. Large A&D companies may process millions of GL entries per hour. The workload Oracle Cloud ERP is designed to handle.
Ecosystem. It has an ecosystem of experienced consultants who have the capabilities to handle the design and architecture of such complex enterprises.

Weaknesses

Limited last-mile capabilities. The last mile capabilities for specific A&D verticals, such as integration with GovCon processes and database may require solutions from third party or custom integration, making the implementation overly expensive.
Limited pre-integrated capabilities with A&D-specific ancillary systems. Integration with A&D-specific PLMs, configurators, and CPQ systems is not out-of-the-box, increasing the implementation time and costs.
Overwhelming for SMB A&D companies. It is not a fit for SMB A&D companies because the over-bloated financial layers are only relevant for large A&D companies.

5. SAP S/4 HANA

SAP S/4 HANA supports complex business models and global entities in the same database, providing end-to-end traceability for large global A&D companies. Ideal fit for large A&D companies as a corporate financial ledger while using focused solutions such as Infor LN, IFS, or Deltek at the subsidiary level. Using it as the main ERP and building last-mile A&D companies might require substantially longer implementation cycles, rendering them cost-prohibitive for SMB companies. Given these considerations, SAP S/4 HANA maintains its #6 rank on our list of top aerospace and defense ERP systems.

Strengths

Ideal solution for publicly traded large global A&D companies. SAP S/4 HANA is an ideal solution as the corporate financial ledger for A&D companies with multiple layers of financial hierarchies operating in multiple countries.
Proven solution with large workloads. Large A&D companies may process millions of GL entries per hour. The workload and MRP workloads SAP S/4 HANA is designed to handle.
Financial and transactional traceability embedded for globally complex A&D companies. SAP S/4 HANA has transactional maps embedded as part of the product, providing the traceability that globally complex A&D OEMs with large programs need.

Weaknesses

Limited last-mile capabilities. The last-mile capabilities for specific A&D verticals, such as integration with GovCon processes and databases, may require solutions from third parties or custom integration, making the implementation overly expensive.
Limited pre-integrated capabilities with A&D-specific ancillary systems. Integration with A&D-specific PLMs, configurators, and CPQ systems is not out-of-the-box, increasing the implementation time and costs.
Overwhelming for SMB A&D companies. It is not a fit for SMB A&D companies because the over-bloated financial layers are only relevant for large A&D companies.

4. Microsoft Dynamics 365 Finance & Operations

MS Dynamics 365 F&O caters to global A&D companies in the upper mid-market and lower enterprise space, supporting complex business models, including support for discrete, process, and distribution-based planning. It is especially strong with WBS-centric processes covering operational and financial schedules equally well. The challenge with MS Dynamics 365 F&O would be the best-of-breed ancillary systems critical for A&D systems, which are not owned and maintained by Microsoft, requiring third-party add-ons. Given these considerations, MS Dynamics 365 F&O maintains its position at #4 on our list of top aerospace and defense ERP systems.

Strengths

Ideal solution as a corporate financial ledger for publicly traded large global A&D companies. In conjunction with A&D-focused ERP systems at the subsidiary level.
Ideal solution for upper mid-market or lower enterprise A&D companies looking for one solution to host their diverse business models, including discrete and process manufacturing, distribution, MRO, and A&D-specific consulting services.
Ecosystem. The largest marketplace with solutions to augment most A&D business models not supported by the core product.

Weaknesses

Not proven solution with large workloads. While MS Dynamics may have been used as a financial ledger for the workload of Fortune 1000, it is not as proven for the global MRP workload in one solution.
Limited last-mile capabilities. The last-mile capabilities for specific A&D verticals, such as integration with GovCon processes and databases, may require solutions from third parties or custom integration, making the implementation overly expensive.
Limited pre-integrated capabilities with A&D-specific ancillary systems. Integration with A&D-specific PLMs, configurators, and CPQ systems is not out-of-the-box, increasing the implementation time and costs.

3. IFS

Targeting larger field service and MRO organizations, IFS is a great solution for larger A&D companies looking for best-of-breed field service and EAM capabilities atop corporate financial ledgers such as SAP or Oracle. It might also be a great fit for upper mid-market and lower enterprise companies primarily focusing on managing large A&D programs. Despite these considerations, IFS maintains its rank at #3 on our list of top aerospace and defense ERP systems.

Strengths

Unique program architecture tailored to track the costs of large A&D programs. Unlike smaller ERP systems with a 1:1 relationship between a sales order and a project, IFS is designed to handle large programs where consolidated visibility would be critical without ad-hoc arrangements.
Enterprise-grade field service and asset management capabilities. Especially suitable for A&D companies because of their need to maintain expensive assets with complex workflows and scheduling requirements for field services.
Unique financial workflows to support complex A&D programs. Expensive MRO operations require unique workflows, such as closing transactions financially at the line level, which might not be possible with ERP systems not designed to handle such transactions.

Weaknesses

Limited focus. The limited focus might be a challenge for A&D companies active with M&A cycles.
Limited ecosystem. Its presence and install base are still limited in North America compared to other solutions on this list.
It is not the right fit for holding and private equity companies as a corporate ledger. While IFS can provide the best-of-breed capabilities in a tier-two architecture or can act as one solution, IFS might not be the best fit to be used just as the corporate ledger for large A&D enterprises.

2. Epicor Kinetic

Highly effective for SMB A&D companies, Epicor Kinetic’s BOMs align seamlessly with A&D firms employing formal engineering processes, emphasizing critical traceability in change control. Specifically tailored for metal-centric industries supplying aerospace, its inventory model accommodates vital processes like nesting and includes attributes in MRP runs. Planning processes cater to complex A&D manufacturing companies with extensive distribution business models. Its WBS-centric processes adeptly handle large programs and short-run jobs. With these considerations, Epicor Kinetic secures the #2 position on our list of top Aerospace and Defense ERP systems.

Strengths

Great for formal manufacturing organizations. The manufacturing organizations with formal engineering processes with revision numbers would relate to the product more.
MRP runs are designed to support complex inventory. MRP runs support product attributes for planning, which is critical for business models such as metal parts manufacturers supplying to aerospace OEMs.
WBS-centric process to handle large programs. Detailed WBS structure containing operational and financial schedules along with large programs requiring a 1:N relationship between a sales quote/order and a project.

Weaknesses

Not a great fit for A&D companies with more than three layers of financial hierarchies. Requires ad-hoc arrangements for larger mid-market companies with more than three financial hierarchies.
Limited focus. Private equity and holding companies looking for support outside of Epicor’s core expertise might struggle with it.
Limited support for field service, process manufacturing, and scalable customer masters. The acquired field service solution is not as seamlessly integrated as today, as well as struggling with process-heavy A&D companies, such as a plastic manufacturer supplying to A&D OEMs. The customer master layers are not as detailed as with other solutions, requiring ad-hoc arrangements for consolidated insights.

1. Infor CloudSuite LN

Infor LN caters to the upper mid-market and lower enterprise A&D manufacturing companies, serving as their primary ERP, provided their business model aligns with Infor LN’s capabilities. It also excels as a subsidiary solution for large enterprises with independently operating subsidiaries. Unlike smaller manufacturing ERPs with limitations in detailed WBS processes or supporting consolidated views of large programs, Infor LN equally supports diverse A&D international business models, with companies heavily focused on process operations being the only exception. With these strengths, Infor LN retains its top position on our list of aerospace and defense ERP systems.

Strengths

Last-mile capabilities for most A&D business models. Capabilities such as contract flow-down clauses and government audit support require intertwined business objects. They might not work as seamlessly with systems not naturally designed to support these processes.
WBS-centric large programs with mixed-mode manufacturing support. Native support for large programs with superior 1:N relationships among projects, quotes, sales orders, and contracts.
A&D-centric PLM with embedded processes and configurator. PLM-ERP integration requires bi-directional data exchange. Using an external system that is not OEM-owned and maintained is technically and financially risky.

Weaknesses

Not the best fit as a corporate ledger. Private equity and holding companies requiring global solutions with a tier-2 solution at the subsidiary level might not be the best use of Infor LN’s strengths.
Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations such as process manufacturing or metal-centric A&D companies.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on very few Infor resellers for consulting and support.

Conclusion

Navigating complex operations and rigorous regulations, aerospace and defense companies demand meticulous process control. Meeting regulatory obligations often brings substantial administrative overhead, affecting profit margins.

Opt for an ERP system tailored to A&D processes, steering clear of generic solutions that may require risky customizations and add-ons, elevating the risk of ERP implementation failure. Ensure your choice aligns with aerospace and defense requirements, utilizing this list as a guide to narrow down options. Seeking assistance from independent ERP consultants is a prudent step toward ensuring success.

FAQs

How are aerospace and defense ERP systems different from other manufacturing ERP systems?

Aerospace parts are highly engineered. And aerospace and defense companies need deep project and program management processes. Unfortunately, most manufacturing ERP systems designed for highly engineered products might lack project and program management operational capabilities. Their capabilities are typically limited to the costing and budgetary tasks to cover the financial needs, but they struggle with a project manager’s more profound project and program management needs.

What are some top features of aerospace and defense ERP systems that differentiate them from vanilla manufacturing ERP systems?

The top features for aerospace and defense include the native support for the AS9100 process and the deep inventory and vendor certification process. It also contains in-depth project and program management support for larger OEMs and T1 companies. However, T3 and below and machine shops serving aerospace may not require the project and program management capabilities.

Do defense contractors have similar needs as aerospace manufacturers?

While aerospace manufacturers might be selling to the defense market, their revenue share may not be as high. And they might not be selling critical components that might go through tighter quality and regulatory scrutiny. On the other hand, the govt contractors might not be involved with in-house manufacturing. They might be selling consulting services or just supplying goods to defense companies. So their business processes are likely to be different from aerospace parts manufacturers.

Top 10 Automotive ERP Systems in 2024

Leave a Comment / Automotive, Blog, ERP / By Sam Gupta / May 8, 2022 March 17, 2025

Selecting an ERP for the automotive industry is uniquely challenging. The consumer-centric nature renders its processes exceptionally intricate and unpredictable. These behaviors have profound downstream effects on the entire value chain, necessitating constant innovation and modifications to existing products. This drives the need for tighter collaboration and joint planning, influencing compliance and global trade processes. This holds true even for smaller companies with limited global operations.

Additionally, the pressure of tighter margins necessitates heightened efficiency on shop floors, introducing distinctive scheduling challenges linked to specialized skills for each operation. Within the value chain, various players may share commonalities and differences, both equally influencing business processes. Shared aspects include adherence to quality standards and OEM reporting, as well as collaborative planning efforts. Conversely, divergent needs arise from unique manufacturing and distribution processes and planning methodologies. Consider, for instance, the contrast between a plastic supplier and a consumer-grade chemical distributor. Even the operations of a machine shop may significantly differ from those of an OEM specializing in school buses. All are generally bundled under automotive, yet their operations and processes are uniquely different.

These distinct considerations emphasize the necessity of understanding the critical success factors. As well as finding an appropriate ERP system designed to support similar transactional volume and operational processes. Choosing an ERP system not explicitly crafted for this sector might drive overengineering. And, in extreme cases, adoption and implementation challenges. Keen to discover the ERP systems fit for these market segments? Join us as we explore the top 10 automotive ERP systems on our list.

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Criteria

Definition of an automotive company. These are the companies in the automotive ecosystem, including OEMs, aftermarket service providers, manufacturers, and distributors. The list considers companies of all sizes in this ecosystem.
Overall market share/# of customers. The higher the market share among automotive companies, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap for the automotive companies, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with a heavy presence from automotive companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Automotive company market share. The higher the focus on automotive companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with automotive companies. The more aligned the acquisitions are with the automotive companies, the higher it rank on our list.
User Reviews. The deeper the reviews from automotive companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. IFS

IFS specializes in serving mid-to-large automotive companies, with its strength in MRO and aftermarket operations. These businesses, handling complex equipment for various OEMs, engage in extensive collaboration with OEMs and suppliers. However, IFS might face challenges in supporting diversified business models within the automotive sector.

In terms of automotive-specific capabilities, IFS may lack efficiency in supplier collaboration, especially compared to solutions like QAD. While it supports various business models, its performance may not match the specialized features offered by competitors like Plex or QAD, particularly in automotive program management.

In comparison to other automotive-focused solutions, IFS may face challenges with out-of-the-box automotive capabilities like MMOG/LE, ITAF, and recall management. It suits automotive companies primarily engaged in field services. Also, a good fit for those seeking best-of-breed field service capabilities for a subsidiary or integrated with a corporate financial ledger. However, due to its limited focus and struggles with diverse business models, we have slightly downgraded its ranking this year. But it still secures its position at #10 among automotive ERP systems.

9. Oracle Cloud ERP

Oracle Cloud ERP targets large global automotive companies, boasting deep capabilities in integrating customer feedback with R&D data. While excelling in mixed-mode manufacturing and international supply chain aspects, it may encounter challenges with specific automotive capabilities.

Suitable for companies adopting a best-of-breed or decoupled architecture, Oracle Cloud ERP’s role limits to finance and HCM, with other systems catering to shop floor and manufacturing needs. Larger enterprises with robust IT departments are likely to be the only ones who will be successful in developing last-mile functionality on top of the vanilla platform.

Despite these considerations, Oracle would be the best fit as a corporate financial ledger for large automotive companies. A corporate ledger, while using another system deeper in capabilities at the subsidiary level, such as QAD, Plex, Infor LN, IQMS, or IFS. Or as the main ERP system with deep internal IT maturity and subject matter expertise in implementing complex automotive requirements. Such implementation often requires help from a change management company. This helps ensure broken processes don’t get assumed as requirements. A practice generally leads to wasting millions of dollars with failed implementation and poorly adopted systems.

It is also a great fit for private equity and holding companies if harmonizing the tool and skillset is more important for them than the additional costs of building last-mile capabilities on top of vanilla ERP platforms. Despite these considerations, Oracle secures the rank of #9 among the top automotive ERP systems.

8. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 F&O focuses on mid-market to large automotive companies, ideal for those with diverse operations encompassing various manufacturing processes, from discrete manufacturing for automotive parts to process manufacturing for activities like plastic extrusion or chemical divisions. Companies with complex field service operations, extensive collaboration with entities, and needs for trade compliance and embedded TMS find this tailored solution advantageous.

Smaller solutions, even those specialized in automotive business models, face challenges managing such diversity. This complexity is particularly notable for private equity-owned holding companies. The companies engaged in M&A cycles, where predicting future business models becomes a more intricate task.

Regarding automotive functionalities, Microsoft Dynamics 365 F&O provides a streamlined automotive add-on, albeit less comprehensive than alternative solutions. Limited last-mile functionality could mandate custom development or dedicated add-ons, requiring internal IT proficiency and expertise in implementing intricate automotive compliance frameworks. The involvement of a change management consulting firm may be necessary to prevent assuming broken processes as requirements. Despite no significant updates in automotive capabilities this year, it retains its position as the #8 choice among top automotive ERP systems.

7. SAP S/4 HANA

SAP S/4 HANA is tailored for large, global, publicly traded organizations requiring collaboration across entities and possessing robust internal IT capabilities. With the ability to scale for extensive MRP runs and process millions of journal entries per hour, it offers a unified system for streamlined operations. However, its last-mile functionality may lack depth in automotive-specific features like PPAP compliance, FMEA analysis, or recall management compared to specialized solutions.

Just like Oracle Cloud ERP or Microsoft Dynamics 365 F&O, SAP S/4 HANA would be the right fit for companies requiring support for complex business models but with their internal IT and subject matter expertise to implement complex automotive capabilities on top of vanilla solutions. The only exception when this would not be required is when companies might use it for corporate financial ledger in conjunction with another operational solution such as Infor LN, QAD, Plex, and IQMS for subsidiary-level operational needs. Despite these considerations, it still maintains its rank at #7 among top automotive ERP systems.

6. DELMIAWorks

IQMS/DELMIAWorks focuses on discrete manufacturing, with a strong emphasis on the automotive vertical and mid-market companies. Similar to QAD and Plex, it provides comprehensive out-of-the-box capabilities for automotive companies, covering MMOG/LE, APQP, gauge R&R, and PPAP compliance, making it particularly advantageous for those in the Honda ecosystem.

However, unlike some competitors, IQMS retains a patchy legacy interface and lacks a vibrant community, potentially affecting talent availability and consulting costs.IQMS is a fit for companies with fairly predictable and static business models primarily focused on plastic-centric business models in the automotive ecosystem. It might also be a great subsidiary solution for large enterprises if they are run fairly independently without much need for collaboration or synergies with other entities. With the least momentum with the solution, IQMS still maintains its position at #6 among the top automotive ERP systems.

5. Infor CloudSuite Industrial

Tailored for SMB OEMs with hybrid manufacturing models, Infor CloudSuite Industrial addresses the needs of automotive companies aiming for flexibility in engineering processes. While many companies typically adhere to formal SKUs and revisions driven by automotive OEMs, engineer-to-order-centric automotive companies may lack such formality. This flexibility accommodates companies without highly formalized BoMs.

Ideal for SMB OEMs and part manufacturers with field services, it may not be the best fit for larger automotive firms or those with process-intensive operations. For example, a discrete manufacturer with a lighter process footprint may find it suitable, whereas a process manufacturer like a plastic extrusion company with a packaging line might not.

Infor CSI’s process manufacturing capabilities were added to support complex discrete manufacturers with diversified business models and are not designed for intricate process manufacturing. Other challenges may arise for automotive companies with business models akin to metal companies that require support for parts without part numbers or those needing to support processes such as nesting or incorporating attributes in MRP planning. While providing out-of-the-box automotive capabilities, they are less detailed compared to solutions like QAD or Plex, impacting implementation budget and risk. Despite being more diverse than automotive-focused solutions like Plex or IQMS, Infor CSI maintains its position at #5 among top automotive ERP systems.

4. Epicor Kinetic

Epicor Kinetic caters to SMB automotive companies that are deeply involved in shop floor activities. An ideal choice for those managing schedules and quality processes within MES, similar to Plex, it may not be suitable for those relying on ERP for scheduling and centralized quality management. Unique BOM structures make it well-suited for companies with formal manufacturing processes and revision numbers. It’s particularly suitable for automobile manufacturers with complex inventories and unique material-to-operation correlations, as well as those handling large programs with WBS-centric processes.

Epicor Kinetic offers diversified support, combining distribution-centric planning with MRP within the same software. While it has acquired advanced field service capabilities, seamless integration might take time, making its field service capabilities less robust than those of some competitors, especially for aftermarket and MRO-centric companies. While an excellent solution for the mid-market and suitable as a subsidiary solution for large automotive companies, it might not be the optimal choice as the main ERP for very large companies due to limited financial hierarchies compared to larger ERP systems.

Most automotive companies with formal BOMs and revision numbers find Epicor Kinetic well-aligned with their planning processes. In comparison with solutions like Infor CloudSuite Industrial (Syteline), Despite these considerations, Epicor Kinetic ranks at #4 on our list of the top automotive ERP systems.

3. Plex

Plex focuses on automotive companies, particularly in the Toyota and Ford ecosystems. Tailored for last-mile S&OP and compliance in these ecosystems, Plex excels as a subsidiary-level solution with robust shop-floor-centric capabilities. It’s ideal for large companies to consolidate automotive portfolios on one solution as a subsidiary-level solution while using another large ERP system as a corporate ledger. It is also a very strong fit for pure-play automotive SMBs in the Toyota and Ford ecosystems.

Originating as an MES solution, Plex struggles with diverse business models, like those requiring project manufacturing capabilities in verticals such as contract manufacturing or engineer-to-order centric companies. In architectures where the shop floor is critical, Plex, like Epicor and IQMS, is a strong fit, but less so when ERP must house quality and scheduling processes, not MES. Cross-functional supply chain processes, while not as robust, are tailored for automotive use cases.

Despite not having widespread adoption like some competitors, Plex boasts super-rich capabilities for program management, pre-integrated with PLM and CAD. With native integration of skills and scheduling, Plex MES supports shop floor needs. Recent updates include functionality for the Ford ecosystem, but diverse business models might find Plex’s scope limiting. As a result, it ranks at #3 on our list of top automotive ERP systems.

2. QAD

QAD caters to mid to large global automotive companies, suitable as a subsidiary-level integrated with a corporate financial ledger or as a pure-play SMB option as their main ERP. Uniquely combining several aspects of supply chain and ERP suites, it’s uniquely tailored for automotive-centric companies. With other solutions, these capabilities generally reside in different siloes, creating isolated boundaries for complex cross-functional mature processes such as allocation or ATP. Recent acquisitions hint at combining HCM and MES capabilities, very similar to Plex’s capabilities, which are especially valuable for automotive companies because of their need for joint collaboration and planning needs. Unique scheduling processes prioritize skillsets and certifications, necessitating integrated learning processes.

Despite not providing as detailed capabilities for Toyota, Honda, or Ford ecosystems, it’s slightly more diverse than other focused solutions such as Plex but not as diverse as other solutions such as Infor LN. Unlike Infor LN, QAD, similar to Oracle ERP Cloud and Microsoft Dynamics F&O, embeds TMS capabilities within the solution. Its user-friendly UI, contrasting with Infor LN, suits business users without requiring extensive customization.

However, QAD’s weaknesses lie in its legacy technology stack and infrastructure, lacking the agility of mainstream cloud providers. Despite the recent announcement of technology updates, which might take a while to stabilize, we have downgraded QAD slightly due to its limited vertical focus and applicability in M&A or holding company structures. Despite these considerations, it holds the #2 rank on our list of top automotive ERP systems.

1. Infor LN

Infor LN, a robust solution for global automotive companies in diverse discrete manufacturing, targets upper mid-market to large players, particularly excelling in the Honda ecosystem. Ideal as a subsidiary-level solution for large enterprises consolidating automotive operations on one solution, it also suits mid-sized companies with varied automotive-centric discrete manufacturing models. However, Infor LN faces challenges with process-centric operations for companies that might also include business operations such as plastic or chemicals as part of their automotive operations.

Unlike smaller solutions like Plex or Infor CSI that might not have as detailed capabilities for each mode of manufacturing and might struggle with complex business models, Infor LN can cover a lot of grounds with most automotive-centric discrete and distribution business models, whether long-standing large programs or aftermarket business that also has very complex distribution operations. Infor LN also has very strong global trade compliance capabilities. While Infor LN is versatile for diverse manufacturing models, Plex holds stronger pure-play capabilities for Toyota and Ford ecosystems. Infor LN, a true SAP S/4 HANA replacement for upper mid-market or lower enterprise automotive companies, offers pre-integrated best-of-breed features like Infor Nexus, WFM, WMS, and specialized PLM solutions.

With reduced implementation time and risks due to pre-integrated functionality, Infor LN stands out as a reliable solution localized and globalized in 50 countries. Despite limitations in broader capabilities compared to other vanilla solutions, recent upgrades acknowledge its broader application in various automotive business models, securing the top rank at #1 on our list of the top automotive ERP systems.

Conclusion

Automotive companies possess distinctive needs, ranging from product forecasting to supply chain demand. Unique quality and reporting standards, especially for ecosystems like Toyota and Honda, require meticulous compliance to safeguard scorecards. Failing to adapt to OEMs’ evolving demands jeopardizes success. Hence, automotive-specific capabilities are crucial, as vanilla ERPs may entail risk and cost due to longer and more expensive implementation cycles.

When choosing an ERP for your automotive company, avoid getting lost in generalized features. This list, published by truly independent automotive ERP consultants, aims to streamline your options and guide you toward a successful implementation.

FAQs

How are automotive ERP systems different from manufacturing ERP systems?

Automotive ERP systems have pre-built automotive functionality related to their planning, compliance, quality needs, customer and vendor collaboration, and scheduling. On the other hand, the vanilla manufacturing systems would require companies to either add-ons or build custom functionality on top of the core manufacturing solution, which could be risky and expensive for SMB automotive companies.

What are some top features of automotive ERP systems that differentiate them from vanilla manufacturing ERP systems?

Automotive ERP systems have pre-built certification and compliance requirements for OEMs such as Honda or Toyota. In addition, they might have richer HCM functionality integrated with the scheduling function that allows companies to schedule based on their skill sets. They also include MMOG/LE, APQP, gauge R&R, and PPAP compliance features.

Do automotive suppliers have similar ERP needs as the OEMs?

No, each company and stakeholder involved in the automotive value chain could have a different business model. And the business model drives their ERP needs. For example, the suppliers might be producing commoditized products or complex parts such as transmission or robotics. Each of these companies could follow very different manufacturing and distribution processes, and that would drive the features required in their ERP system.

Top 10 Large Company ERP in 2024

Leave a Comment / Aerospace & Defense, Automotive, Blog, Chemicals, Construction, Consumer Goods, Distribution, ERP, Food and Beverage, High Tech & Electronics, Industrial Manufacturing, Life Sciences, Retail, Service Companies / By Sam Gupta / May 1, 2022 March 17, 2025

For large companies, selecting an ERP system is no longer about meeting functional specifications. Instead, it’s about their ability to handle the transactional capacity and cross-functional process throughput. Evaluating software-enabled processes’ throughput mirrors physical or human resources planning, commencing with the desired state and identifying necessary resources. Contrary to the misconception of infinite capacity in software systems, meticulous capacity planning is indispensable.

The critical determinant in cross-functional process throughput boils down to the choice between isolated and tightly integrated processes. Amidst variables like human resources interactions, reconciliation overhead, and the switchover effect, pinpointing the most financially efficient approach proves challenging. Consequently, companies adopt varied ERP implementation strategies—some favoring tightly integrated methods, others leaning towards slightly more best-of-breed approaches. Additional factors include the generation of journal entries per user interaction, driving system overhead, and the cycle time for cross-functional processes. Advocates for real-time to batch conversion exist, yet even in batch mode, time considerations take precedence. For example, an MRP run exceeding 5 hours could fracture SQL connections and disrupt planning schedules, underscoring the need for meticulous analysis and ERP selection aligned with these considerations.

Top 10 Large Company ERP in 2024 - Quadrant

While throughput assessment may seem scientific, persuading every department to use the same ERP system can cause political resistance and power struggles. Evolving desired states and extended implementation horizons are other challenges large organizations face, forcing them to treat ERP as the corporate financial ledger while allowing their subsidiaries to choose their systems. So, which systems prove optimal at this stage regardless of their choice of architecture? Let’s delve in.

ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

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Criteria

Definition of a large company. More than $1B in revenue or more than 1000 employees. Might be publicly listed. Financial controls are a must for SOX compliance and public reporting. Finance takes over operational needs. Might be present in more than ten countries.
Overall market share/# of customers. Higher market share among the large companies ranks higher.
Ownership/funding. The more committed the management to the product roadmap for large companies, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with large companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Larger company market share. The higher the focus on large companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with large companies. The more aligned the acquisitions are with the large companies, the higher it ranks on our list.
User Reviews. The deeper the reviews from large companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. Workday/Certinia

Workday, initially tailored as an HCM solution for Fortune 1,000 accounts, finds its niche in industries with sizable white-collar workforces. While Workday serves well as a comprehensive ERP for large enterprises in sectors like tech, media, telecom, banks, retail, and financial services, its suitability diminishes for product-centric industries requiring deeper transactional depth in inventory, costing, and MRP processes. However, it can excel in product-centric scenarios in a best-of-breed architecture sitting atop a corporate financial ledger.

Historically, Certinia served as an alternative for finance before Workday developed its financial module. Depending on architectural preferences, both Workday and Certinia would be fit for best-of-breed architecture in some industries or function as complete ERPs in others. Despite a lower market share as ERP, their unique presence secures the #10 position on this list.

Strengths

Enterprise-grade best-of-breed capabilities. Workday and FinancialForce excel in HCM and PSA, respectively, in their target industries, sitting atop the corporate financial ledger such as SAP or Oracle.
Proven for enterprise workloads. Both solutions have been proven for enterprise workloads where the Fortune 100 may process millions of journal entries per hour, only possible with the disconnected architecture.
Cloud-native. Both solutions are cloud-native, a huge plus for large enterprises aiming for superior cross-functional throughput.

Weaknesses

Requires internal IT maturity. The executives with limited experience in building complex architecture might struggle to hire skilled experts.
Requires discipline with master data governance. The inability to build cross-functional with master data governance and cross-functional integration workflows might be counterproductive.
Expensive. While operationally efficient, best-of-breed architecture is likely to be the most expensive of all, with substantial integration and maintenance costs in the long term.

9. QAD

QAD, a supply chain-focused manufacturing solution, caters to large automotive, F&B, and high-tech companies. Ideal as a subsidiary-level solution or as a corporate ERP for lower enterprise markets, it suits firms seeking robust functionality in supplier collaboration and international trade. Although a legacy solution, QAD has announced its plans to rearchitect the solution on a modern tech stack. However, its smaller size may pose challenges with transactional processing for larger accounts, and its niche nature could be limiting for enterprises with diverse operational models. Considering these factors, QAD secures the #6 rank among large company ERP systems.

Strengths

Pre-integrated best-of-breed suite tailored for specific micro-verticals. QAD shines in specific micro-verticals where the generalized BOMs and recipes of vanilla solutions might struggle, especially beneficial as a subsidiary solution of large enterprises.
ERP + Supply Chain Suite. QAD is perhaps the only suite that combines the capabilities of both suites, especially beneficial in architecture with disconnected supply chain planning at the plant level.
Multi-entity Support. QAD would be a great fit for enterprises that want to consolidate some entities relevant to supply chain planning while keeping the remaining integrated through the corporate financial ledger.

Weaknesses

Limited focus. The limited focus might be a challenge for enterprises planning to host all of their entities in one solution, requiring an upgrade to a more diverse solution.
Limited ecosystem. QAD’s ecosystem is substantially limited, causing issues with global rollout in countries with limited local talent.
Technology. While QAD plans to redesign its entire platform, moving away from legacy technologies such as RPG, it might take a few years before it fully stabilizes.

8. Sage X3

Sage X3 is suitable for enterprises in the agriculture, F&B, and process manufacturing industries as a subsidiary-level best-of-breed solution, sitting atop SAP or Oracle– or, as a corporate solution for lower enterprises. With one of the strongest security and financial traceability, it could be a great fit for publicly traded or audit-ready companies in the lower enterprise market. However, it’s not proven with the upper enterprise market, particularly those necessitating millions of journal entries per hour. Despite these considerations, it secures the #8 spot among large company ERP systems.

Strengths

Great for enterprise pharma and agriculture companies. Last mile capabilities for pharma, agriculture, and process-centric companies as a subsidiary solution atop a corporate financial ledger such as SAP or Oracle.
Deep ERP layers for audit-ready and public companies. Ideal as a complete ERP solution, especially in the process-centric companies in the lower enterprise market.
Great ecosystem of consultants for pharma validation. The ecosystem includes consulting companies with deep expertise in the Sage X3 product and validation procedures.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for enterprises active with the M&A cycle and using it as a corporate solution with the desire to host all of their entities in one solution.
Not proven for the larger enterprise market. While great for the lower enterprise market and as a subsidiary solution, it’s not a great fit as a corporate solution for the upper enterprise market.
Limited best-of-breed capabilities. Enterprise companies looking for pre-integrated best-of-breed options may struggle to find those options with Sage X3.

7. Unit4

Unit4, a robust ERP system, specifically targets large educational institutions and public-sector entities. Its forte lies in people-centric functionality augmented by enterprise-grade ERP capabilities. Noteworthy is Unit4’s unique standing, offering enterprise-grade functionalities for student information and teacher workflow management, setting it apart in the market. Proven in handling substantial workloads, Unit4 boasts successful implementations in some of the largest universities and public sector organizations, traditionally domains of Oracle Cloud ERP, Workday, or Microsoft Dynamics 365 F&O. Despite being rearchitected for a cloud-native experience, Unit4 remains a legacy product.

While primarily a European solution, Unit4 ensures localization and globalization for numerous countries. However, its challenge lies in accommodating diverse business models, making it less suitable for companies acquiring entities with varied business models, securing the #7 position on our list of large company ERP systems.

Strengths

Enterprise-grade capabilities for universities and non-profits. Perhaps the only solution in this space that has depth in the public sector space, requiring substantial consulting efforts atop vanilla solutions.
Cloud capabilities. While the solution is legacy, they have made substantial progress with their cloud capabilities.
Pre-integrated HCM and procurement processes tailored for service-centric industries. Solutions such as Workday that offer best-of-breed HCM and indirect procurement capabilities might be technically and financially risky.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for enterprise companies active with M&A cycles, especially for business models outside of Unit4’s expertise.
Limited ecosystem and consulting base. As of today, their North American presence and consulting base is significantly limited.
Limited best-of-breed capabilities. Enterprise companies opting to build best-of-breed architecture might not find as many pre-baked integration options, requiring substantial consulting efforts.

6. Deltek

Deltek caters to major government contractors, AE, and construction companies, serving as an ideal subsidiary solution for large enterprises or as a corporate solution for lower enterprise segment planning to host all of their global entities in one database. Tailored for these industries, Deltek offers unique capabilities, leveraging industry-specific databases and integrations, which is particularly crucial for processes like CPQ. While excelling in deep capabilities for certain industries, Deltek is not as complete as an ERP as other solutions on this list, necessitating additional integrations. Despite its focused scope, recent developments have influenced its ranking, securing the #6 position among large company ERP systems.

Strengths

Last-mile capabilities for GovCon and construction-centric verticals. Deltek has last-mile capabilities in the construction and GovCon space, making it an ideal subsidiary solution for large enterprises.
Access to the databases and networks relevant to these industries. Deltek has several products in its portfolio with industry databases and networks that would be much harder to build atop vanilla solutions because of the subject matter expertise required in these industries.
Multi-entity capabilities. Their multi-entity capabilities are rich, making them suitable for lower enterprise companies seeking a corporate solution to host all of their entities in one database.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for enterprise companies active with M&A cycles, especially for business models outside of Deltek’s expertise.
Limited ecosystem and consulting base. As of today, their ecosystem and consulting base is significantly limited.
Not proven for the larger enterprise market. While great for the lower enterprise market and as a subsidiary solution, it’s not a great fit as a corporate solution for the upper enterprise market.

5. Infor CloudSuite M3/LN

Infor LN and M3, distinct products bundled into CloudSuite offerings, share our list’s ranking due to their non-overlapping target markets. While Infor CloudSuite LN focuses on discrete-centric verticals like aerospace and automotive, Infor M3 caters to industries such as apparel and food and beverage. Both offer comprehensive manufacturing solutions for global organizations with diversified manufacturing business models, including essential components like PLM and industry-specific quality features. Positioned as subsidiary solutions for the upper enterprise market or corporate solutions for the lower enterprise market, they secure the #5 spot among large ERP systems.

Strengths

Great for lower enterprise companies as pureplay manufacturing business models. Ideal for lower enterprise companies as a corporate solution or as a subsidiary solution for upper enterprise, publicly traded, private equity-owned, or holding companies.
Most comprehensive manufacturing capabilities. Both can support the most complex manufacturing business models for global companies exploring operational synergies across global entities.
Enterprise-grade capabilities for lower enterprise companies. While most smaller solutions might require ad-hoc arrangements for global financial operations, both have them natively built.

Weaknesses

Not the best fit as a corporate ledger. Large enterprises, private equity, or holding companies requiring global solutions while using a tier-2 solution at the subsidiary level might not find the most value with both.
Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on very few Infor resellers for consulting and support.

4. IFS

IFS focuses on large enterprises in the airline, MRO, construction, oil and gas, and heavy equipment field service sectors, offering strong ERP, EAM, field service, and enterprise project management capabilities. Suited for large enterprises seeking best-of-breed solutions, IFS can sit atop financial ledgers like SAP or Oracle or serve as a subsidiary solution. Despite notable progress in North America, its install base is comparatively limited. With recent growth in enterprise adoption, IFS secures the #4 position on our list.

Strengths

Enterprise-grade field service and asset management capabilities. This is especially suitable for upper enterprise companies seeking best-of-breed capabilities with field service and asset management.
The data model is aligned with companies with large programs. Industries such as MRO, Oil, and Gas follow very different project structures and BOMs. And IFS’s data model allows them to manage complex programs without any ad-hoc arrangements.This is especially beneficial for lower enterprise companies looking for last-mile capabilities pre-baked with the solution.
Technology – While a legacy solution, IFS technology has been rearchitected and modernized using cloud-native SaaS technologies.

Weaknesses

Limited focus. The limited focus might be a challenge for enterprise companies active with M&A cycles.
Limited ecosystem. Its presence and install base are still limited in North America compared to other solutions on this list.
Not proven for the larger enterprise market. While great as a best-of-breed solution for field service or EAM, it’s not proven for the workload of Fortune 1000 companies.

3. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 F&O is perhaps the most diverse solution accommodating several global business models in one database, making it an ideal solution for lower enterprise companies seeking a corporate solution to host all of their entities in one database. While a great fit as a corporate ledger for large enterprises, it’s not as proven as other leading solutions in the enterprise market with workloads as high as millions of journal entries per hour that Fortune 1000 companies might demand. Given these considerations, it secures the #3 spot on our large company ERP systems list.

Strengths

Diverse capabilities.Supports global operations and business models and pre-baked integration for the best-of-breed CRM and field service solutions.
Ecosystem. This is especially beneficial for private equity and holding companies trying to streamline all of their entities on one solution. They can find add-ons if the core solution doesn’t meet their needs for last-mile industry capabilities.
Global capabilities. Global capabilities would help enterprise companies in countries with its limited presence or support, making it a truly global solution compared to other platforms on this list.

Weaknesses

The channel is not as regulated. Microsoft channel is very complex, without any direct support for its resellers and partners, making navigating the Microsoft channel extremely hard.
Limited best-of-breed capabilities directly through OEM. While Microsoft Dynamics 365 F&O has a vibrant marketplace to augment its core capabilities, crucial capabilities such as PLM, etc, might not be owned and pre-integrated by Microsoft.
Limited last-mile capabilities. The last-mile capabilities required in specific micro-verticals such as dairy, plastic, building supplies, or metal might require add-ons or expensive development on top of the core platform.

2. Oracle Cloud ERP

Ideal for large enterprises in service industries, Oracle Cloud ERP stands out as a top choice as a corporate financial ledger within best-of-breed architectures, whether for publicly traded or privately owned entities. While excelling as a financial ledger, its suitability as a subsidiary solution in best-of-breed setups is limited due to over-bloated global capabilities and leaner last-mile functionalities compared to other solutions on the list. Given these considerations, Oracle Cloud ERP claims the #2 spot among large company ERP systems.

Strengths

Robust finance capabilities for large, global enterprises. Capabilities include having five layers of GL restrictions, multiple layers of sub-ledgers, and book closing requirements across divisions, making an ideal corporate ledger for complex global enterprises.
Proven solution as a corporate ledger with Fortune 1000 workloads. It can handle the workload of large enterprises processing millions of GL entries per hour.
Ecosystem. Oracle Cloud ERP has an ecosystem of experienced consultants capable of handling the architecture of such complex enterprises.

Weaknesses

Global transactional and financial traceability are not as intuitive. While functionally capable, transactional and financial traceability might not be as intuitive for large, complex enterprises.
It may not be the best fit for large enterprises with complex transactions or Fortune 1000 global MRP workloads. While great as a financial ledger, complex products with serialized structures or large enterprises with very complex BOMs with operational and financial synergies among entities might struggle with the solution because of the workload requirements at this scale.
Not the best fit as a subsidiary solution. There are better solutions on this list that can offer much deeper operational capabilities at the subsidiary level without the overloaded complex financial layers of Oracle Cloud ERP.

1. SAP S/4 HANA

SAP S/4 HANA is among the few solutions with capabilities to handle the workload expectations of most complex products with global MRP runs, making it ideal as a corporate ledger for most enterprise companies, publicly or privately owned, or as a corporate ERP for globally integrated product-centric industries, regardless of their design including shared services. Despite its enterprise-grade capabilities, it is not as suitable for enterprises seeking deeper operational capabilities at the subsidiary level. Given these considerations, it secures the #1 rank among large ERP systems.

Strengths

Robust finance capabilities for large, global enterprises. Capabilities include several financial hierarchies to support complex, global organizations without requiring ad-hoc arrangements for global traceability or consolidations.
Proven solution with the most detailed enterprise-grade MRP strategy for global planning. Globally connected enterprises with shared product models and dependencies among entities, SAP S/4 HANA, can handle most complex planning configurations without the requirement of decoupling the transactions.
Intuitive global transactional and financial traceability. It is one of the most intuitive ERP products for such complex operations with its transactional maps capabilities built with the products, making debugging complex financial enterprises easier.

Weaknesses

Behind in cloud ERP capabilities. Despite advanced financial traceability and technical capabilities, the functional capabilities are not as rich as with its on-prem version.
Not the best fit as a subsidiary solution. There are better solutions on this list that can offer much deeper operational capabilities at the subsidiary level without the over-bloated complex financial and enterprise layers.
Limited last-mile capabilities. In industries where it might not be the most frequently installed as an operational solution, the other solutions are likely to have deeper last-mile capabilities.

Conclusion

Transitioning into the $1B club brings unique challenges like navigating multiple country regulations, cash flow intricacies, currency hedging, and international supply chain complexities—issues less prevalent in mid-market companies.

Deploying systems designed for smaller enterprises may lead to financial control shortcomings. Large companies should avoid squeezing into ill-fitting solutions and explore options tailored to their specific needs. Let this list guide you in narrowing down suitable ERP choices for your enterprise with the help of independent ERP consultants.

FAQs

How are large company ERP different from smaller ERP systems?

The large company ERP system offers more robust territory and production planning capabilities. They are also localized and globalized in more than 10-15 countries. On the other hand, smaller ERP systems may offer much deeper operational functionality applicable at the plant level.

Why do I not see the ERP system well-known in my industry on this list?

We compile these lists based on several criteria such as market share, community, talent base, product, and corporate strategy. So it’s likely that the ecosystem or product that might be well-known in your industry may not have a large enough market share to make a cut on this list.

What is the best approach to selecting a large company ERP system?

Larger companies require much more work aligning different functions before selecting an ERP system. They also need more profound research into the capabilities and business processes. Without this research, the larger companies are likely to go for the most popular solutions, which might fire back as sometimes even minor customizations might break the implementation or could turn out to be very expensive.

Top 10 Mid-sized Business ERP in 2024

Exceeding the $100 million revenue mark is more challenging than commonly perceived. Relying on ad-hoc planning and siloed processes can result in financial performance issues. To advance to the next stage, robust process integration and global financial and operational synergies are essential—and because of these reasons, companies require mid-sized business ERP designed for this stage.

Moreover, even within mid-market businesses, diverse needs emerge. The larger peer group, denoted as upper mid-market companies (approaching $1B in revenue), frequently opt for extensive ERP systems like SAP S/4 HANA or Oracle Cloud ERP. However, prematurely implementing such enterprise-grade ERP systems can hinder momentum and growth, particularly when facing challenges in predicting size and business model evolution during active M&A cycles. Conversely, others seek global synergies, employing shared services to uncover financial and supply chain benefits in specific regions. These contrasting approaches call for distinct system strategies.

Conversely, the smaller peer group, positioned at the lower end of the mid-market (approximating $100M in revenue), can advance to $250 million without necessitating the same level of process stringency. Nevertheless, they often require planning for more advanced capabilities such as ATP, allocation, or consolidated planning. For seamless cross-functional adoption of planning solutions, teams must streamline their data and processes. However, at this stage, limitations in implementation budgets and skillsets prevent them from adopting the same approach as their upper mid-market peers. Some companies aiming for accelerated growth may emulate the upper mid-market strategy, while others may opt for a conservative approach, selecting systems designed for the lower mid-market segment. So, what constitutes the ideal systems for these mid-market businesses?

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Criteria:

Definition of mid-size organizations. $50M-$1B in revenue or less than 1000 employees. It might be present in 4-10 countries. Getting the proper planning and scheduling is critical for growth. The integration of processes and systems is essential to plan and scale.
Overall market share/# of customers. The higher the market share among the mid-market companies, the higher it ranks on our list.
Ownership/funding. The more committed the product roadmap for the mid-market, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the presence from the mid-market companies, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Mid-market market share. The higher the focus on mid-market companies, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with mid-market. The more aligned the acquisitions are with the mid-market, the higher it ranks on our list.
User Reviews. The deeper the reviews from the mid-market companies, the higher the score.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. Plex

Plex targets mid-market automotive companies, specializing in manufacturers and distributors within the Toyota and Ford ecosystems. Taking an MES-first approach, it provides robust last-mile capabilities tailored to this niche. Plex is particularly suitable for upper mid-market companies adopting a best-of-breed strategy, with Plex as the operational solution and a stronger financial solution handling corporate ledger functions.

It may also be a good fit for lower mid-market businesses aligned with Plex’s core capabilities and stable business models. However, Plex’s lack of significant portfolio developments for mid-market customers has led to a slight downgrade, maintaining its position at #10 among mid-sized business ERP systems.

Strengths

Last mile capabilities for mid-market companies with limited budgets. Companies limited in their budget would find the last mile capabilities appealing as building them might be technically and financially risky for mid-market companies.
MES-first approach. Plex is perhaps the only solution in the mid-market space that takes a MES-first approach, making it especially friendly for companies interested in capitalizing on Industry 4.0 strategies.
Cloud-native. Plex was born in the cloud just like other cloud-native solutions, providing richer cloud capabilities such as enterprise search and being mobile-friendly.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for mid-market companies active with M&A cycles. Even for pure-play manufacturers, the capabilities might be on the learner side because of the limited support for mixed-mode manufacturing.
Limited ecosystem and consulting base. The consulting base is super limited, with companies primarily relying on Plex to provide professional services.
It is not an ideal solution as the enterprise core. The ERP layers are substantially limited a challenge for mid-market companies planning to go public or requiring deeper ERP capabilities.

9. Unit4

Unit4 serves service-centric mid-market organizations, standing out with its integrated human resources component. Distinct from counterparts like FinancialForce, Sage Intacct, and Workday, Unit4 excels in supporting the operational processes of schools and public sector entities. Competing with major players such as PeopleSoft, Oracle Cloud ERP, SAP S/4 HANA, Microsoft Dynamics F&O, and Workday, Unit4 proves to be an ideal fit for various mid-market segments. Recent acquisitions have broadened its capabilities, offering integrated suites for P2P, HCM, and ERP in service-centric industries. Despite the lack of momentum in 2024, it still maintains its position at #8 on our list of the top 10 mid-sized business ERP systems.

Strengths

Enterprise-grade capabilities for universities and non-profits. Unit4 is perhaps the only solution in this space that has such depth in the public sector space. The same capabilities would require substantial consulting efforts atop vanilla solutions.
Cloud capabilities. While the solution is legacy, they have made substantial progress with their cloud capabilities.
Pre-integrated HCM and procurement processes tailored for service-centric industries. Solutions such as Workday that offer best-of-breed HCM and indirect procurement capabilities for similar verticals might be technically and financially risky.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for mid-market companies active with M&A cycles, especially for business models outside of Unit4’s expertise.
Limited ecosystem and consulting base. As of today, their North American presence and consulting base is significantly limited.
Limited best-of-breed capabilities. Mid-market companies opting to build best-of-breed architecture might not find as many pre-baked integration options, requiring substantial consulting efforts.

8. Deltek

Deltek targets mid-market businesses in construction, government contracting, architecture, and engineering. Setting itself apart from similar solutions like QAD, Plex, Epicor Kinetic, and Infor CSI, Deltek boasts logos as prominent as AWS and Booz Allen Hamilton. However, these logos often leverage their best-of-breed capabilities, which are relevant for mid-market companies considering Deltek as an operational solution. While its multi-entity capabilities position it as a corporate solution in the lower mid-market, additional complementary solutions like CRM may be needed for features found in fully integrated alternatives. In contrast to Sage Intacct or Oracle ERP Cloud, Deltek excels in last-mile functionality for government contractors, particularly in DCAA compliance. Given a substantial downgrade due to a lack of portfolio momentum, Deltek secures its position at #8 among mid-sized business ERP systems.

Strengths

Last-mile capabilities for GovCon and construction-centric verticals. Deltek has last-mile capabilities in the construction and GovCon space, requiring substantial development atop vanilla solutions.
Access to the databases and networks relevant to these industries. Deltek has several products in its portfolio with industry databases and networks that provide it a unique advantage over other vendors.
Multi-entity capabilities. Their multi-entity capabilities are rich, making them suitable for upper mid-market companies seeking one solution to host all of their entities in one database.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for mid-market companies active with M&A cycles, especially for business models outside of Deltek’s expertise.
Limited ecosystem and consulting base. As of today, their ecosystem and consulting base is significantly limited.
Limited best-of-breed capabilities. Mid-market companies opting to build best-of-breed architecture might not find as many pre-baked integration options, requiring substantial consulting efforts.

7. Sage X3

Sage X3 holds a distinctive market position, primarily targeting process, agriculture, and food & beverage companies. Unlike many counterparts focused on discrete manufacturing, Sage X3 stands out with profound functionality tailored for process-centric industries. It excels in features like native support for formulation, potency management, use-by-date, sub-lots, and food traceability. They are the right fit for upper mid-market companies seeking operationally rich solutions at the subsidiary level for process-centric industries. Or the lower mid-market companies are seeking one solution for all of their global entities in one database. Sage has had a questionable commitment to their X3 product lately, and because of this, we have downgraded their ranking substantially, now ranking at #7 on this list.

Strengths

Great for upper mid-market pharma companies. Designed for process and food and beverage manufacturing and distribution. As a result, it provides far deeper functionality for large pharma companies out of the box.
Deep ERP layers for audit-ready and public companies. Sage X3 is especially strong with its accounting and finance capabilities for mid-market companies aiming to go public or the ones that require audit-ready capabilities.
Great ecosystem of consultants for pharma validation. The ecosystem includes consulting companies with deep expertise in the Sage X3 product and validation procedures.

Weaknesses

Limited focus. The limited focus of the solution might be a challenge for mid-market companies active with M&A cycles, especially for business models outside of Sage X3’s expertise.
Limited ecosystem. While it has great ecosystems of consultants and partners, the number of integrations supported might be limited for business models outside of its core expertise.
Limited best-of-breed capabilities. Mid-market companies looking for pre-integrated best-of-breed options may struggle to find those options with Sage X3.

6. QAD

QAD focuses on upper-mid-sized companies with intricate supply chain requirements, particularly in the automotive and life sciences verticals. While it may lack the extensive last-mile functionality for Honda or Toyota ecosystems, unlike Plex or Infor LN, QAD excels in international trade and TMS capabilities pre-built with the core solution.

These TMS capabilities closely match those of larger counterparts like Oracle Cloud ERP and Microsoft Dynamics F&O.QAD has made substantial advancements with its technology with its new announcement of rearchitecting its entire platform, securing its rank at #6 on this list.

Strengths

Pre-integrated best-of-breed suite tailored for specific micro-verticals. QAD shines in specific micro-verticals of Automotive and Life Sciences where the generalized BOMs and recipes of vanilla solutions might struggle.
ERP + Supply Chain Suite. QAD is perhaps the only suite that combines the capabilities of both suites, such as Supply Chain and ERP. Most solutions would require two different suites, creating data siloes with these suites and struggling with centralized inventory and supply chain planning.
Multi-entity Support – Unlike other smaller solutions that are likely to have limited global support, QAD has built-in support for companies interested in exploring operational and financial synergies globally.

Weaknesses

Limited focus. The limited focus might be a challenge for mid-market companies active with M&A cycles, especially with business models outside of QAD’s expertise.
Limited ecosystem. QAD’s ecosystem is substantially limited, and for the most part, you will be relying on QAD’s professional services for maintenance and support.
Technology. While QAD plans to rearchitect their entire platform moving away from legacy technologies such as RPG, it might take a few years before they are fully stable on the new platform.

5. IFS

IFS caters to mid-size utility, oil and gas, MRO, airline, and large equipment service companies, positioning itself as a cost-effective alternative to SAP S/4 HANA. Ideal for upper mid-market companies unable to invest millions in consulting and implementation, IFS excels in managing complex field service scheduling, even for massive workforces of up to 500K field workers.

In terms of technology and cloud-native experience, IFS rivals QAD and Plex with its superior user experience. Because of the limited focus of their solution to certain industries and advancements in technology with other vendors, we have downgraded their ranking slightly but still maintain its ranking at #5 on this list.

Strengths

Enterprise-grade field service and asset management capabilities. While limited in its suite and focus, their last-mile capabilities are the strongest for their target industries.
The data model is aligned with companies with large programs. Industries such as MRO, Oil, and Gas follow very different project structures and BOMs. And IFS’s data model allows them to manage complex programs without any ad-hoc arrangements.
Technology. While a legacy solution, IFS technology has been rearchitected and modernized using cloud-native SaaS technologies.

Weaknesses

Limited focus. The limited focus might be a challenge for mid-market companies active with M&A cycles.
Limited ecosystem. Its presence and install base are still limited in North America compared to other solutions on this list.
It is not the right fit for holding and private equity companies as a corporate ledger. While IFS can provide the best-of-breed capabilities in a two-tier architecture or can act as one solution, IFS might not be the best fit to be used just as the corporate ledger for mid-market companies.

4. Epicor Kinetic

Epicor Kinetic specializes in manufacturing, addressing hybrid scenarios in industries like metal, automotive, and aerospace with formal processes and intricate inventory management. Tailored for organizations spanning manufacturing, construction, and distribution, Epicor Kinetic uniquely aligns with their core processes.

In the realm of cloud capabilities, the modernized Epicor Kinetic, distinguished from legacy systems, features mature offerings, including enterprise search. While well-suited for lower mid-market companies, those in the upper mid-market with over three financial hierarchies may find it less ideal, requiring ad-hoc arrangements. With out-of-the-box MES functionality, Epicor Kinetic caters to mid-market companies seeking integrated Industry 4.0 capabilities without extensive consulting costs, securing the 6th position on our list of top 10 ERP systems for small businesses.

Strengths

Great for formal manufacturing organizations. The manufacturing organizations that follow formal manufacturing processes with revision numbers would relate to the product more.
Last-mile capabilities for complex manufacturing organizations. 90% of the capabilities required by verticals such as metal, automotive, and aerospace are pre-packaged with the core platform.
Mature cloud capabilities. Although a legacy product, it includes mature cloud capabilities such as enterprise search and transactional maps for end-to-end transactional traceability.

Weaknesses

Not a great fit for upper mid-market companies with more than three layers of financial hierarchies. Epicor Kinetic will require ad-hoc arrangements for larger mid-market companies with more than three financial hierarchies.
Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on Epicor’s professional services for consulting and support.

3. Infor CloudSuite LN/M3

Infor CloudSuite LN and M3 stand as flagship solutions tailored for upper-mid market companies, with over $250M in revenue. In particular, Infor M3 excels in unique inventory capabilities, supporting planning based on style, size, and season with native integration for apparel-centric PLM. Conversely, Infor LN has the most comprehensive manufacturing capabilities.

While most smaller manufacturing solutions may have limitations with the type of manufacturing they can support and would require ad-hoc arrangements, Infor LN and M3 can support most manufacturing business models. Given their lack of overlap, LN and M3 collectively secure their position. Although lacking major developments in 2023, their suite-centric approach positions them favorably for mid-market companies, earning them the 3rd spot on our list of top 10 ERP systems in 2024.

Strengths

Great for upper mid-market pureplay manufacturing business models. Ideal for upper mid-market companies or as subsidiary solutions in a two-tier setting for private equity-owned or holding companies.
Most comprehensive manufacturing capabilities. Both can support the most complex manufacturing business models, WBS-centric manufacturing, or support for attributes with MRP planning.
Enterprise-grade capabilities for upper mid-market companies. While most smaller solutions might require ad-hoc arrangements for global financial operations, both have them natively built.

Weaknesses

Not the best fit as a corporate ledger. Private equity and holding companies requiring global solutions while using a tier-2 solution at the subsidiary level might not find the most value with both.
Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on very few Infor resellers for consulting and support.

2. NetSuite

NetSuite stands out as a versatile solution, making it a top choice for private equity and holding companies seeking to streamline their portfolio companies on one solution and skillset. Its broad market coverage caters to diverse segments, offering native capabilities and vibrant ecosystem add-ons for comprehensive global support. While not as tailored for intricate operations like industrial manufacturing or distribution without add-ons, NetSuite excels in supporting various business models, be it product- or service-centric. It proves invaluable for companies requiring robust financial audit support, crucial for publicly traded organizations.

In a pivotal move, NetSuite introduced CPQ and enhanced P2P capabilities in 2023, expanding its offerings, securing its rank at the #2 spot on our list of top 10 mid-sized business ERP systems in 2024.

Strengths

Diverse capabilities.Supports multiple industries and business models with pre-baked integration flows, reducing consulting and implementation efforts for budget-constrained mid-market companies.
Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities in most industries.
Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for mid-market businesses.

Weaknesses

Weaker data model. The data model is not as structured as with SAP or Acumatica, making it harder to understand and follow.
Limited mature last mile capabilities. While NetSuite has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution are extremely limited.
Not fit for pure-play manufacturing or industrial distribution holding companies. Companies focused on pure-play manufacturing or industrial distribution might not find the most value in NetSuite.

1. Microsoft Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance and Operations is perhaps the most diverse, with native capabilities to host business models as diverse as discrete and process manufacturing, as well as discrete and service-centric verticals. While it can support most business models natively as part of the same platform, it also offers a vibrant marketplace to augment its core capabilities, making it ideal for private equity and holding companies to streamline all of their global entities on one solution and skillset. Although re-architected for a cloud-native experience, not all modules and workflows have fully transitioned, retaining some legacy components. Given its diversity and applicability for most industries and mid-market companies, it wins the #1 spot on this list.

Strengths

Diverse capabilities.Supports global operations and business models and pre-baked integration for the best-of-breed CRM and field service solutions, ideal for mid-market organizations growing in complexity.
Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities of most industries.
Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for mid-market businesses.

Weaknesses

The channel is not as regulated. Microsoft channel is very complex, without any direct support for its resellers and partners, making navigating the Microsoft channel extremely hard.
Limited best-of-breed capabilities directly through OEM. While Microsoft Dynamics 365 F&O has a vibrant marketplace to augment its core capabilities, crucial capabilities such as PLM, etc, might not be owned and pre-integrated by Microsoft.
Limited last-mile capabilities. The last-mile capabilities required in specific micro-verticals such as dairy, plastic, building supplies, or metal might require add-ons or expensive development on top of the core platform.

Conclusion

Mid-market companies at a critical juncture often contemplate larger solutions like SAP S/4 HANA or Oracle ERP Cloud, risking low adoption due to complexities. Success in the mid-market hinges on exploring dedicated ERP options tailored to their current needs, avoiding unnecessary change management challenges.

Despite a large solution’s capacity, it might not be the most financially prudent decision. This list serves as a starting point, yet expertise is crucial for aligning a solution with unique business requirements. Consulting with an independent ERP expert ensures a successful ERP journey.

FAQs

Why can’t I use smaller ERP systems for mid-market companies?

While technically it’s possible, you will have significant inefficiencies and planning issues if your processes and entities don’t have tighter operational integration. The upper mid-market companies may be exploring global markets either for supplier or customer base. The smaller solutions will require them to be in completely separate databases, increasing the admin efforts and preventing capitalizing on financial opportunities.

Why should I even bother going for mid-market solutions, and why not go for the best ERP systems such as SAP S/4 HANA?

While SAP S/4 HANA is a highly capable solution designed to meet the needs of larger enterprises with far deeper financial control needs, mid-market companies don’t need such an overcomplicated workflow just yet. Also, the bigger solutions require much deeper expertise with IT and internal capabilities to build custom functionality on top of the core platform. The mid-market companies aren’t as financially sound as their large counterparts to assume such financial risks.

What is the best approach to selecting a mid-market ERP system?

The ERP projects for mid-market companies have added complexity in collaboration across business units. It requires deeper planning and rollout than with companies that may have a couple of entities globally. Since these engagements are highly expensive and risky, you must talk to an independent ERP selection firm such as ElevatIQ which can guide you objectively and help select a system that will work for your business.

Top 10 ERP Systems for Small Business in 2024

As businesses evolve beyond the startup phase, they often resort to employing various disjointed solutions, even if ERP may be part of their architecture. ERP adoption at this stage is primarily centered around financial reporting and basic transactions. The budget constraints of the previous stage lead to the creation of ad-hoc processes and unique data models, urging the need for streamlining to sidestep financial challenges at the next inflection point. Additionally, the expansion of departments introduces overlaps in responsibilities, making finding ERP systems for small business uniquely challenging.

To meet KPIs and delivery expectations, batch capabilities become pivotal at this stage. The increased workload arising from reconciling disconnected data silos and managing ad-hoc processes prompts exploration of process re-engineering and tightly integrated processes. This also triggers the consolidation of critical point solutions requiring tighter alignment of cross-functional processes, particularly those involving inventory. Inventory accuracy and financial control gain significance, especially if the small business is now owned by a private company with aggressive M&A and growth plans, necessitating a superior ERP implementation, often requiring expert assistance.

Top 10 ERP Systems for Small Business in 2024 - Quadrant

While a micro view is important at this stage of ERP selection, complete automation of planning, procurement, and scheduling may not be a critical focus. Additionally, if executive teams lack experience in such transformations, they might not fully appreciate their value. Their tactical perspective and critical success factors are likely to guide them toward systems aligning with their priorities and current needs. So, which ERP systems are best suited for smaller businesses?

ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

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Criteria

Definition of small organizations. $10-100 mil in revenue or 25-300 employees. Low implementation budget up to $100K. No appetite for integration or custom development. Some systems and processes could remain siloed. Little to no planning is needed.
Overall market share/# of customers. The higher the market share among small organizations, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with a heavy presence from small organizations, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Small business market share. The higher the focus on small organizations, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with startups. The more aligned the acquisitions are with the small organizations, the higher they rank on our list.
User Reviews. The deeper the reviews from small organizations, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. SAP Business One

SAP Business One proves excellent for smaller companies prioritizing financial control over extensive operational features, particularly suitable for companies in geographies where other operationally rich ERP solutions might not be available. In contrast to DIY-friendly options like Odoo or Zoho, SAP Business One has more detailed ERP layers but not as detailed as those found in NetSuite or Acumatica.

The cloud version lacks the deep industry functionality inherent in the on-premises version, especially in contrast to specialized solutions like Aptean Ross. Diversified business models, such as equipment dealerships, seeking robust field service capabilities may find SAP Business One less accommodating than alternatives like Acumatica or Prophet 21. Due to a perceived lack of momentum in the SAP Business One portfolio, a slight downgrade has been made, yet it retains its position at #10 of top ERP systems for small Business.

Strengths

Global Capabilities. Ideal for companies in geographies where other operationally rich solutions might not be accessible.
Financial traceability and governance workflows built with the product. The transactional maps to track complex multi-entity workflows are built as part of the product.
Power of HANA. Companies with complex product mixes and resource-intensive product models, such as serial number processes, may require the power of HANA even for smaller operations.

Weaknesses

Behind in cloud capabilities. The cloud version is not as rich operationally as the on-prem variant, requiring third-party add-ons and code base from VARs.
The cloud ecosystem is not as developed as its on-prem variant. The cloud ecosystem doesn’t have as many companies investing in add-ons and integration.
Lack of SAP’s commitment to the SMB market. SAP’s focus is on retaining its enterprise market, which puts the SMB market at a disadvantage.

9. Rootstock

Utilizing the Salesforce platform, Rootstock, alongside SAP Business One, MS Dynamics 365 Business Central, and Epicor Prophet 21, caters to distributors and project-centric custom manufacturers. Particularly attractive to companies on the Salesforce platform, Rootstock faces limitations inherent in the Salesforce platform. Newer CRM systems, including Salesforce, lack the same database-level referential integrity enforced by traditional ERP systems. While enhancing the user experience for sales and marketing teams, this design may pose financial control challenges.

Rootstock’s current implementation base is limited, relying on various apps within the Salesforce ecosystem, thereby elevating integration and maintenance risks. Additionally, issues like the disconnected reporting layer in Salesforce contribute to a less cohesive experience compared to newer ERP systems. Despite these considerations, Rootstock maintains a strong position for smaller businesses, securing its spot at #9 on our list of top 10 ERP systems for small businesses.

Strengths

Salesforce-native experience. The transition would be easier for companies already using the Salesforce platform for other departments.
Pre-integrated with other best-of-breed Salesforce apps. The transactional maps to track complex multi-entity workflows are built as part of the product.
Cloud-native and mobile-friendly. Companies with complex product mixes and resource-intensive product models, such as serial number processes, may require the power of HANA even for smaller operations.

Weaknesses

Data integrity and financial control issues. CRM-friendly data models bypass the database-level referential integrity, potentially causing financial control issues.
Limited install base. The current install base of Rootstock is substantially limited compared to other solutions positioned for smaller companies.
Limited consulting base and ecosystem. While Rootstock leverages the Salesforce ecosystem, the companies that would deeply understand Rootstock IP are limited.

8. Aptean Ross ERP

Aptean Ross ERP caters to process manufacturers and distributors with extensive requirements for traceability, formulation, and nutrient support. Similar to Epicor Prophet 21, Aptean Ross ERP has undergone rearchitecting to incorporate cloud-native functionality.

While not as globally localized, Aptean Ross ERP excels in providing deeper operational functionality tailored to specific industries. Positioned between larger solutions like Sage X3 and Microsoft Dynamics 365 Business Central and smaller ones like Odoo or Zoho, Aptean Ross requires consulting support for setup and implementation.

Given its targeted focus on specific industry verticals, Aptean Ross ERP may face challenges with companies with diversified business models. Despite these considerations, Aptean Ross ERP retains its position at number 8 on our list of the top 10 ERP systems for small businesses.

Strengths

Last-mile capabilities for the process industry. The last-mile capabilities, such as recipes, formulation, and batch production capabilities, are pre-baked as part of the solution.
Pre-integrated essential bolt-ons. Supported and maintained by Aptean. But don’t forget to vet pre-baked workflows for your use cases.
Relatively Cloud-native. While legacy, the solution is available as a cloud version, making it easier for smaller companies to implement ERP without worrying about IT.

Weaknesses

Limited consulting base and ecosystem. The consulting base is limited to Aptean, and since Aptean is privately equity-owned, the support and professional services may not be as friendly as those of family-owned businesses.
Clunky technology underneath with potentially poorer documentation. Since it’s not a complete rewrite, it retains the legacy code base, exception flows, data model, and documentation.
Limited focus. Companies that are diverse with their business model or active in the M&A cycle might outgrow the solution quickly, requiring another implementation.

7. Sage Intacct

Distinguished from other options, Sage Intacct holds a unique market position, concentrating on service-centric sectors like oil and gas, construction, utility, non-profit, and media. While lacking the extensive operational capabilities of Acumatica or NetSuite for product-centric industries, Sage Intacct boasts enhanced multi-entity functionality tailored to its design and target market.

However, Sage Intacct falls short of Acumatica’s versatility in supporting diverse business models such as manufacturing, distribution, field service, and construction. Born in the cloud ERPs like Acumatica and NetSuite, Sage Intacct features a modern interface akin to Acumatica or Microsoft Dynamics 365 Business Central. Positioned beyond smaller startup solutions like Odoo or Zoho, Sage Intacct necessitates consulting assistance for setup and configurations.

Despite these considerations, Sage Intacct maintains its position at number 7 on our list of the top 10 ERP systems for small businesses.

Strengths

Great as a corporate financial ledger. The accounting and financial capabilities are enterprise-grade to support global financial operations in one database while using best-of-breed solutions or ERP in the 2-tier setting.
Last-mile capabilities for service-centric organizations. Service-centric organizations have very unique needs, such as revenue recognition, partner accounting, and subscription accounting, which are pre-baked with the solution.
Cloud-native. The technology is cloud-native, with modern APIs to integrate with best-of-suite offerings.

Weaknesses

Limited focus. The core capabilities, especially for inventory-centric organizations, are substantially limited, making it more of a best-of-breed enterprise-grade cloud accounting solution as opposed to a true ERP.
Overly complicated security and macro capabilities that smaller companies might not find as valuable.
Integration challenges for smaller companies. The reliance on external CRM and field service software causes challenges with integration and maintenance in the long run.

6. Epicor Kinetic

Epicor Kinetic serves as a specialized manufacturing solution, catering to hybrid manufacturing scenarios that demand formal manufacturing processes and intricate inventory management, particularly in sectors like metal, automotive, and aerospace. Tailored for organizations straddling manufacturing, construction, and distribution, Epicor’s core processes uniquely suit this intersection.

The modernized Epicor Kinetic boasts mature cloud capabilities, including enterprise search, setting it apart from its legacy counterparts. While laden with operational features for larger enterprises, its focus remains limited, potentially presenting an overly complex data model for smaller organizations with constrained implementation budgets. Offering out-of-the-box MES functionality, Epicor Kinetic appeals to smaller companies seeking pre-integrated Industry 4.0 capabilities without hefty consulting expenses. As a result, Epicor Kinetic secures the 6th position on our list of the top 10 ERP systems for small businesses.

Strengths

Great for formal manufacturing organizations. The manufacturing organizations that follow formal manufacturing processes with revision numbers would relate to the product more.
Last-mile capabilities for complex manufacturing organizations. 90% of the capabilities required by verticals such as metal, automotive, and aerospace are pre-packaged with the core platform.
Mature cloud capabilities. Although a legacy product, it includes mature cloud capabilities such as enterprise search and transactional maps for end-to-end transactional traceability.

Weaknesses

Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on Epicor’s professional services for consulting and support.

5. Epicor Prophet 21

Epicor Prophet 21 caters to smaller industrial distributors, offering deeper operational functionality despite being less globally and locally oriented than SAP Business One or Microsoft Dynamics 365 Business Central. Its out-of-the-box capabilities make it a preferred choice for smaller distributors aiming to avoid expensive integration and custom development risks. Although distribution-focused, it lacks the diversification seen in other solutions on this list that cater to various business models like industrial manufacturing or field service capabilities.

While Epicor Prophet 21 has undergone a rearchitecture with the Epicor Kinetic UX framework, a significant portion of the code remains legacy. The SaaS version offers concurrent users, potentially reducing costs for companies with multiple shift workers reutilizing licenses. Despite legacy aspects, it maintains its position at number 5 on our list of the top 10 ERP systems for small businesses due to its strong presence in buying groups.

Strengths

Ideal for industrial distributors. Last-mile capabilities include support for buying groups and complex kits, with light manufacturing built as part of the product.
Ecosystem integration in the industrial space. Epicor Prophet 21 has pre-baked integration with most tools prevalent in the industrial distribution space, such as eCommerce platforms.
Mature cloud capabilities. Although a legacy product, it includes mature cloud capabilities such as enterprise search.

Weaknesses

Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial independent ERP consulting help to be successful with the product.
Limited focus. The limited focus on certain business models poses the risk of requiring other ERP systems to support complex and diverse business operations.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on Epicor’s professional services for consulting and support.

4. Infor CloudSuite Industrial

Infor CloudSuite Industrial stands out as a robust solution for larger OEMs engaging in mix-mode manufacturing. Unlike Acumatica or NetSuite, it surpasses them in size, offering comprehensive support for multi-entity structures and global operations. With inherent capabilities for diverse manufacturing processes like JIT and Kanban, Infor CloudSuite Industrial eliminates the need for numerous add-ons. Additionally, it includes Infor OS, facilitating seamless integration with other Infor products like Infor WMS and Infor CRM.

Although larger than startup-focused solutions such as Odoo or Zoho, Infor CloudSuite Industrial, tailored for manufacturing, may require assistance from a consulting company. It may not be the ideal choice for businesses with hybrid models like manufacturing and distribution or distribution and construction. Despite these considerations, Infor CloudSuite Industrial maintains its position at number 4 on our list of the top 10 ERP systems for small businesses.

Strengths

Ideal for industrial manufacturers. The data model is especially friendly for companies with or without formal manufacturing processes with complex field service operations.
Last-mile capabilities. Mixed-mode manufacturing capabilities, especially for manufacturers that might require all modes of manufacturing, including ETO, MTO, or MTS.
Infor OS. Unlike other systems on this list, Infor OS doesn’t require a separate license for external iPaaS tools to integrate with external applications.

Weaknesses

Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
Limited focus. The limited focus on certain business models poses the risk of requiring another ERP system to support complex and diverse business operations.
Limited ecosystem and consulting base. The consulting base is highly limited, primarily relying on a limited number of Infor resellers.

3. Acumatica

Acumatica, akin to NetSuite and Sage Intacct, is a cloud-native ERP solution with extensive multi-branch capabilities spanning manufacturing, distribution, construction, and field service, all consolidated in a single database. This broad functionality distinguishes Acumatica from more specialized solutions like Epicor Kinetic, Epicor Prophet 21, and Infor CloudSuite Industrial.

Despite its focus on small businesses, Acumatica lacks robust globalization and localization features, catering to a limited number of countries by default. This simplicity, however, benefits smaller companies by avoiding unnecessary layers of multi-entity operations. While well-suited for operations in countries like the US, UK, and Australia, Acumatica’s scope is restricted compared to solutions providing localized capabilities in more regions. Although targeting small businesses, Acumatica surpasses Odoo or Zoho in scale, necessitating consulting help for implementation. These aspects solidify Acumatica’s standing at #3 on our list of the top 10 ERP systems for small businesses.

Strengths

Rich operational capabilities packaged in one database. Business models as diverse as field service, manufacturing, construction, and distribution in one database.
Cloud-native, with the experience being very similar to other SAAS products, such as Salesforce or Quickbooks.
Deep batch capabilities. While some solutions on this list might not have scalable layers for batch operations, the Acumatica data model is friendly for most 1:N capabilities companies seeking to decouple and optimize their operations.

Weaknesses

Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
Limited global application. Acumatica is relevant only in certain countries where they might have localization supported.
Limited mature last mile capabilities. While Acumatica has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution might be limited.

2. Microsoft Dynamics 365 Business Central

MS Dynamics 365 Business Central excels for diverse businesses in the service and product-centric industries. It is especially friendly for holding and private equity companies trying to streamline their entire portfolio on one solution. While the operational capabilities might be limited, its vibrant marketplace can fill the gap for most industries, making it a truly diverse ERP system in the small business space.

It is also one of the most localized and globalized solutions with a consulting base present in most countries, making it a truly global solution to keep all global entities without requiring another ERP because of the diversity or outgrowth of the business model because of active M&A activities. Because of these reasons, Microsoft Dynamics 365 Business Central retains its position at number 2 on our list of the top 10 ERP systems for small businesses.

Strengths

Diverse capabilities.Supports multiple industries and business models and pre-baked integration for the best-of-breed CRM and field service solutions.
Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities of most industries.
Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for smaller businesses.

Weaknesses

Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
The channel is not as regulated. The Microsoft channel is very complex, without any direct support for its resellers and partners, making navigating the Microsoft channel extremely hard.
Limited mature last mile capabilities. While Microsoft Dynamics 365 BC has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution might be limited.

1. NetSuite

NetSuite stands out as a globally adopted and diverse solution for smaller businesses. While it boasts strong financial capabilities for both public and private sectors, the experience can be patchy due to the legacy interface despite being a cloud-native ERP. Scalability issues with data layers make NetSuite challenging to implement in spaces like manufacturing and industrial distribution. However, it excels for holding companies and private equity firms streamlining their portfolio companies on one solution.

In contrast to Acumatica, NetSuite, like SAP Business One and Microsoft Dynamics 365 Business Central, excels in deep globalization, covering over 100 countries with country-specific apps for regulatory compliance. While startups may be enticed by its introductory offer, NetSuite’s scale demands consulting help, setting it apart from simpler solutions like Odoo or Zoho. NetSuite maintains its position as the number 1 choice on our list of the top 10 ERP systems for small businesses.

Strengths

Diverse capabilities.Supports multiple industries and business models with pre-baked integration flows available through Celigo.
Ecosystem, with consultants present in most countries and solutions available to augment the core capabilities in most industries.
Global capabilities. Supported and actively installed in most countries globally, making it a true global ERP for smaller businesses.

Weaknesses

Requires consulting help to be successful with the product. The data layers are highly detailed, requiring substantial consulting help to be successful with the product.
Weaker data model. The data model is not as structured as with SAP or Acumatica, making it harder to understand and follow.
Limited mature last mile capabilities. While NetSuite has a vibrant marketplace to augment its core capabilities, the last-mile capabilities required for manufacturing or industrial distribution are extremely limited.

Conclusion

Defining SMB can be subjective, yet small companies share specific needs upon outgrowing the startup phase. Limited budgets and expertise hinder expensive integrations, requiring comprehensive functionality within the suite.

When evaluating an ERP solution as a small company, avoid smaller solutions for startups or larger ones for mid-size enterprises. Identifying the right-sized solution is crucial for a successful implementation. Taking the help of an independent ERP consultant might go a long way to finding a solution uniquely tailored to your needs.

FAQs

What is the difference between a startup, small company, and mid-size from the viewpoint of ERP?

The smaller companies are bigger than startups and could have revenue in the range of $5-50 mil dollars. Their processes need to be more integrated than startups, but they can’t afford expensive integrations or customizations. While they have a smaller budget to afford the services of consulting companies, the budget is not as high. Due to their size, planning is not yet important.

What are the most important features of an ERP system for small businesses?

Small business requires full-suite capabilities and the most essential integration as part of the suite. They also require deeper 1:N capabilities in consolidating and segmenting the process steps. For example, as they grow, they might acquire larger corporate accounts, which might request consolidated invoices or varied order configurations. These capabilities are typically not available in the accounting systems or the ERP systems targeted for startups.

Can an ERP system designed for small businesses be implemented in the DIY mode?

The ERP systems designed for small businesses have many configurations that require deep implementation experience with ERP data and how each of these decisions will impact the downstream processes. These systems are not as simple as accounting systems or the ERP systems designed for startups. Attempting to implement them in the DIY mode might result in inefficient processes and overengineered systems.

Top 10 ERP Systems for Startups in 2024

Growing startups transitioning from smaller accounting systems after they hit their first million in revenue may not immediately prioritize process integration. The simplicity of their existing systems may lead them to believe that larger counterparts overcomplicate processes and data. Some startups attribute their agility and superior customer experience to their “uniquely crafted processes.” Operational challenges typically emerge around $30-40 million in revenue, varying by industry, as headcount increases, leading to diverse processes and conflicting sources of truth.

This financial inflection point indicates the outgrowth of the startup stage. Progressing to the next inflection point involves embracing tighter processes and data integration while minimizing existing data silos. Companies weigh options between fully integrated ERP systems or partial integration, with operational integration being the priority. Depending upon the direct impact of data siloes on operational efficiency, the need for integration might vary. In certain industries, the need for integration may not be pressing due to lower transaction volumes or minimal impact on the bottom line.

During the startup phase, companies often lack the financial means to hire experienced executives or consultants. Consequently, they gravitate toward user-friendly ERP systems that require minimal expertise and are specifically designed to be “forgiving.” While their forgiving nature simplifies usage, it may lead to data integrity concerns. Nonetheless, these issues typically don’t have a substantial impact on the bottom line during this stage. The systems crafted for startups possess unique characteristics. Curious to discover which systems are tailored for this crucial phase?

ERP Selection: The Ultimate Guide

This is an in-depth guide with over 80 pages and covers every topic as it pertains to ERP selection in sufficient detail to help you make an informed decision.

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Criteria

Definition of startups. Less than $10 mil in revenue or 20-25 employees. Founder leading most of the functions. 1-2 employees for each function, including accounting, purchasing, and operations. $0-30K implementation budget.
Overall market share/# of customers. The higher the market share among the startup companies, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap, the higher it ranks on our list.
Quality of development. The more cloud-native capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community with a heavy presence from the startups, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the publisher-owned out-of-the-box functionality, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Startup market share. The higher the focus on startups, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with startups. The more aligned the acquisitions are with the startup market, the higher it ranks on our list.
User Reviews. The deeper the reviews from the startup companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as QuickBooks, Freshbooks, Xero, Zendesk, HubSpot, or Salesforce. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

The 2025 Digital Transformation Report

Thinking of embarking on a ERP journey and looking for a digital transformation report? Want to learn the best practices of digital transformation? Then, you have come to the right place.

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10. ECI Macola

ECI Macola, acquired from Exact, resembles SYSPRO in functionality, serving 1K+ customers with deep capabilities for small manufacturers and distributors, surpassing Odoo or ERPNext. While not as robust as Acumatica or NetSuite, it excels with distribution industries and light manufacturing within ECI’s portfolio. Despite being less complex than Acumatica or NetSuite, consulting help is essential, setting it apart from DIY solutions like Odoo or ERPNext.

Without consulting help, companies are likely to run into implementation and adoption challenges. The uncertainty in ECI’s commitment to Macola’s future, especially innovation compared to other products in their portfolio, results in a substantial downgrade this year, maintaining rank #10.

Strengths

A tightly integrated data model. The data model is scalable and very ERP-like but would require substantial consulting expertise to code and formalize SKUs, BOMs, and GLs.
Processes are especially friendly for FMCG distributors. The data and process models are especially friendlier for FMCG distributors. It might not be as suitable for other industries or diverse business models.
SQL-based. Compared to other solutions on this list, this is an SQL-based solution, providing tighter data integrity that might not be feasible with file-based variants.

Weaknesses

Requires consulting help. The relational data structure requires substantial consulting help. Without seasoned executives or consutlants, the startups are likely to face implementation or adoption issues.
Uncertain technology roadmap. With so many solutions in ECI’s portfolio, overlapping solutions like ECi Macola might not receive the same attention as their cloud-native variants.
Not as cloud-native. While they have improved the tech stack substantially, it’s not as cloud-native as other options on this list.

9. NetSuite

NetSuite, a multi-tenant, multi-entity solution, targets distribution, B2C, and commerce-centric and service-centric organizations with an attractive starting implementation fee of $30K. The price point is appealing for startups, although it necessitates significant customer involvement. While suitable for upper-range startups, NetSuite is the most complex on this list, requiring consulting help.

Its object and process model rival Acumatica and Sage Intacct, and it offers globalized and operationally rich solutions for product-centric and service-centric companies. Despite being excellent for slightly larger organizations, NetSuite’s complexity makes it less desirable for startups seeking simpler DIY solutions. This year, NetSuite sees a slight downgrade but maintains rank #9 on the list for ERP systems for startups.

Strengths

A scalable ERP. NetSuite’s diverse operational model and global capabilities can accommodate many business models in several geographies, making it a scalable ERP.
Ecosystem and consulting base. The ecosystem has one of the best-of-breed SaaS solutions with pre-baked integration to augment its core capabilities, and the consulting base is available in most countries.
Ability to support diverse business models. Ideal for startups that are private equity-owned or active with M&A cycles. Also, it is ideal for holding or private equity companies looking to streamline their entire portfolio on one platform.

Weaknesses

Requires consulting help. The complex data model would require substantial consulting help, or the startups might face implementation or adoption challenges.
Bloated Multi-entity Capabilities. The bloated multi-entity entities’ capabilities might be overkill for startups operating in just a couple of countries and might require unnecessary consulting and data modeling help.
Expensive. NetSuite is perhaps one of the most expensive on this list, which might be cost-prohibitive for startups looking for affordable solutions.

8. Acumatica

Acumatica, a multi-tenant, multi-branch solution, primarily targets US and UK-based companies with limited global operational capabilities. It focuses on distribution, construction, manufacturing, and field service organizations, utilizing a reseller network for promotion. Although suitable for startups outgrowing their initial phase, Acumatica may lack simplicity for those avoiding costly consultants and intricate integrations.

Native integrations include Shopify, BigCommerce, POS, PLM, and marketplace integrations, catering to late-stage startups. However, the design complexity requires consulting help and budget allocation is necessary to maintain integrations. While Acumatica is comparable to NetSuite, its smaller size and simpler design make it more approachable for startups. This year, Acumatica experienced a slight downgrade but maintains rank #8 on the list of ERP systems.

Strengths

A scalable ERP. Just like NetSuite, Acumatica’s data layers natively support complex business operations, whether you need simpler transactional processing capabilities or batch, to make your operations efficient.
Ability to support diverse business models. Acumatica can support multiple business models as part of the same database, making it ideal for companies with diverse business models.
Not as bloated with global capabilities. Limited multi-entity capabilities make the data model simpler for startups that don’t need unnecessary layers of global capabilities.

Weaknesses

Requires consulting help. It would require seasoned ERP consultants to implement, making it less friendly for startups with limited implementation budgets.
Pricing might be harder to predict with growth. Consumption-based pricing requires consulting expertise to estimate transactions as the pricing is not as intuitive and predictable as per-user pricing.
Harder to learn. The ERP layers make it harder for startups to learn who might require a simpler data model without cross-functional dependencies and exceptions.

7. Sage Intacct

Sage Intacct focuses on non-inventory or service-centric industries, offering extensive financial capabilities suitable for mid-sized professional service firms. While surpassing QuickBooks enterprise, Microsoft GP, Zoho, and Odoo in financial capabilities, Sage Intacct may require add-ons, integrations, or custom development if you plan to use it in industries it doesn’t target, such as manufacturing or distribution.

Unlike QuickBooks or Odoo’s simplicity, Sage Intacct, tailored for slightly larger organizations, likely necessitates consulting help for implementation. For service startups, including non-profits, construction, marketing agencies, or financial services, Sage Intacct stands out, providing deeper operational capabilities unique to these verticals. Similar to NetSuite and Acumatica, Sage Intacct faces challenges with layers and complicated accounting and security structures that might be less beneficial for startups. As a result, it has been substantially downgraded and now ranks at #7 on our list of top 10 ERP systems for startups.

Strengths

Ideal for holding and private equity companies looking for a corporate financial ledger. Ideal for holding companies to host global startups in one database.
Friendlier for service-centric startups. Capabilities such as partner accounting and revenue recognition are natively built as part of the product.
Ecosystem and consulting base. Their ecosystem consists of several SaaS vendors, and most accounting firms consult on the product.

Weaknesses

Requires consulting help. A richer accounting and security layer would require help from consulting firms.
Bloated Multi-entity Capabilities. Unnecessary for companies looking for simpler solutions.
Integration challenges. Sage Intacct doesn’t have core capabilities built as part of the same solution, such as CRM or field service, requiring external software and integration maintenance in the long term.

6. Zoho

Zoho, like Odoo, dominates the CRM and HCM markets with a substantial market share. Employing a strategy akin to Salesforce and Workday but tailored for smaller startups in professional services, distribution, healthcare, and eCommerce. With growth, challenges may arise with intricate scenarios like consolidated invoicing or complex allocations. Despite these challenges, Zoho’s user-friendly design facilitates easy DIY implementation with minimal consulting help or expenses. However, we’ve downgraded Zoho due to less tightly integrated apps, causing potential data integrity issues for ERP-like operations. Despite the downgrade, it retains the #6 rank on our list of the top 10 ERP systems for startups in 2024.

Strengths

Easier to learn for companies outgrowing QuickBooks. ERP data models are generally harder to learn because of cross-functional dependencies. That’s not the case with Zoho.
Friendlier for service-centric startups. The data model is especially friendlier for service-centric operations, with CRM being very similar to Salesforce with an integrated project and HCM module.
Does not require as much consulting help. The data model is flatter and doesn’t have as complex ERP layers, which makes the implementation easier and less expensive for startups.

Weaknesses

Does not provide the same level of data and process integration as with a true ERP. Flatter data model would not be as scalable for startups looking for mature capabilities such as batch operations or layered pricing.
Ecosystem limited to Zoho products. Zoho’s ecosystem might not have as many best-of-breed pre-integrated options for companies integrating with tools of their choice.
Not a scalable ERP solution. The data model is not as tightly correlated, which will drive operational inefficiencies and financial control issues at the micro level with growth.

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5. SYSPRO

SYSPRO, a single-tenant product, closely resembles ECI Macola, Microsoft GP, SAP Business One, or Infor Visual. Tailored for small discrete and process manufacturers and distributors, it offers extensive operational functionality comparable to Acumatica or NetSuite.

While not as globally localized as SAP Business One, SYSPRO matches in financial capabilities, supporting complex distribution businesses with rich UoMs, activity-based accounting, and layered object hierarchies. Despite these capabilities, implementation demands consulting help, posing challenges for startups in self-serve mode.

Comparable to Acumatica or NetSuite for businesses with one or a couple of US sites, SYSPRO lacks the cloud-native edge of newer players. Its operational and financial depth surpasses Odoo and Zoho, yet the complexity and implementation costs deter startups from seeking simpler, DIY-friendly solutions. Despite pros and cons, SYSPRO maintains the #5 rank on our list of top 10 ERP systems for startups.

Strengths

A tightly integrated data model. An ERP-like data model with mature ERP capabilities, such as complex layers for inventory costing and MRP.
Ability to support diverse business models. SYSPRO, while friendlier for F&B-centric distributors, can support many business models including discrete and process, as well as distribution.
SQL-based. Compared to other solutions on this list, this is an SQL-based solution, providing tighter data integrity that might not be feasible with file-based variants.

Weaknesses

Requires consulting help. The relational data structure requires substantial ERP consulting help. Without seasoned executives or consutlants, the startups are likely to face implementation or adoption issues.
Harder to learn. The ERP layers would make it harder for companies that might be outgrowing point solutions such as accounting or CRM.
Not as cloud-native. While they have improved the tech stack substantially, it’s not as cloud-native as other options on this list.

4. ERPNext

ERPNext stands out for startups with technical skills, following a distribution strategy akin to Odoo and fostering a vibrant open-source developer community. Though not as well-adapted as Odoo, it caters to the verticals with a heavier need for custom development, such as non-profits or universities.

While supporting basic transactions, it lacks depth in business objects and process models in richer ERP systems, which is crucial for scalability. Unlike other niche, focused solutions solutions, such as ECI Deacom, ProShop, GlobalShop, and JobBOSS2, ERPNext lacks industry-specific last-mile functionality. Despite the pros and cons, it maintains the rank of #4 on our list of the top 10 ERP systems for startups.

Strengths

Easier for companies to outgrow QuickBooks. The data model is not as tightly correlated and integrated as other richer ERP solutions, making it easier for startups transitioning from point solutions such as CRM or QuickBooks.
Ecosystem and Development Help. ERPNext has a vibrant technical community of developers, which makes it affordable for companies to access technical talent in several geographies.
Does not require as much consulting help. The data layers are not as intertwined as the other richer ERP systems, making the implementation easier and less expensive.

Weaknesses

Does not provide the same level of data and process integration as with a true ERP. Cross-functional data layers don’t have the same hierarchies and layers, making it less scalable compared to other richer ERP solutions.
An open-source ecosystem might lead to inexperienced developers promoting untested and unsecured code. The code promoted by inexperienced developers may lead to cybersecurity issues and operational disruptions.
Requires business consulting help to avoid overengineering by developers. And overengineering might lead to maintenance nightmares and operational inefficiencies.

3. ECI JobBOSS2

ECI JobBOSS2 emerges as a new cloud-native product, combining JobBOSS and E2 Shoptech’s strengths. JobBOSS was tailored for smaller custom manufacturing startups, while E2 Shoptech, a more robust counterpart akin to SYSPRO or Macola, targeted smaller jobs and machine shops, featuring deep capabilities seen in products like GlobalShop or ProShop.

As ECI JobBOSS2 unfolds, it’s poised to inherit JobBOSS’s development flavors, promising easy configuration in the DIY mode. With deeper functionality tailored for machines and job shops, unparalleled in vanilla solutions like Odoo or ERPNext, ECI JobBOSS2 holds its ground at #3 on our list of top 10 ERP systems for startups.

Strengths

Easier to learn. The data model and user flows are similar to QuickBooks, making the software easier to learn for startups.
Friendlier for machine shops. Ideal for smaller machine shops without complicated inventory needs or SKU codings but still with the most relevant operational capabilities, such as job management and basic scheduling.
Does not require as much consulting help. The data model does not require codings or layers similar to richer ERP systems, making it much less expensive to implement.

Weaknesses

Might not provide other crucial integrations such as MES or QMS out-of-the-box. Gaining compliance certifications may require expensive consulting and development help.
Private Equity ownership might not be as friendly for startups with support and consulting. The support and consulting might not be as friendly as ECI, which is privately equity-owned, as startups might expect from other family-owned solutions.
Compliance workflows such as AS9100 might require substantial consulting support. The compliance workflows might not be as pre-baked with other solutions that might not be ERP but might have richer operational and compliance capabilities.

2. ECI Deacom

ECI Deacom stands out as the purpose-built solution for process industries catering to food and beverage distributors, pharmaceutical and cannabis manufacturers, and DTC brands. Unlike file-based solutions, DeaCom excels in transactional integrity, boasting an SQL-based data store. Even more mature systems like Acumatica or NetSuite face challenges in these verticals, necessitating multiple add-ons.

Companies in these niches demand unique capabilities, including traceability, recall management, route accounting, and compliance with serial number requirements. While ECI Deacom, born in the cloud, may not have as detailed and scalable data model as NetSuite or Acumatica, its seamless implementation in the DIY mode, with minimal consulting assistance, contributes to its rank at #2 on our list of the top 10 ERP systems.

Strengths

Easier to learn. A flatter data model makes it easier for startups transitioning from point solutions such as QuickBooks to learn.
Cloud-native. The cloud-native interface would not have as much switchover effect as with the other legacy variants.
Substantial last-mile capabilities for process and F&B verticals. Deeper operational capabilities required for process industries, such as route accounting or multiple serial and lot numbers supported on the item master, make it uniquely suitable for these industries.

Weaknesses

The data model is not as scalable as a true ERP. The data model is especially flatter for complex operations such as multi-entity accounting, running into scalability and traceability issues.
Private Equity ownership might not be as friendly for startups with support and consulting. The support might not be as friendly as with a family-owned company.
It would require consulting help with data modeling. The deep layers of data required for pharma and F&B operations would require consulting support to implement successfully.

1. Odoo

Odoo emerges as a straightforward choice for startups, offering superior operational capabilities compared to cloud accounting solutions like QuickBooks, Xero, or FreshBooks. With an affordable per-app business model, Odoo has a tighter data model comparable to mature ERP solutions than lightly integrated software like Zoho. While lacking out-of-the-box last-mile functionality for niche industries, Odoo stands out for eCommerce companies and industry 4.0 integrators, leveraging in-house capabilities to extend and support internal processes.

Odoo’s object and process model may not match the richness of Acumatica or NetSuite, but this simplicity contributes to its startup-friendly design, eliminating the need for expensive consulting assistance. As a result, Odoo maintains its top position at #1 on our list of the top 10 ERP systems for startups.

Strengths

Easier for companies to outgrow QuickBooks. The lean data model and workflows make it easier for startups transitioning from QuickBooks-like solutions to learn.
Ecosystem and Development Help. The availability of cheaper technical talent globally helps startups extend or augment core capabilities.
Ideal for diverse startups. The data and process model supports diverse industries, including product and service-centric startups, making it an ideal solution for private equity and holding companies to host all of their global startups in one database.

Weaknesses

Mature capabilities are not as pre-baked as larger peers. Mature capabilities such as MRP, allocation, and batch are not as detailed as with other richer ERP systems.
An open-source ecosystem might lead to inexperienced developers promoting untested and unsecured code. The inexperienced developers might promote untested code, causing cybersecurity issues or operational disruptions.
Requires business consulting help to avoid overengineering by developers. Without access to seasoned ERP consultants, Odoo implementation is likely to run into implementation or adoption challenges.

Conclusion

Crafted for startups, these solutions provide vital features without requiring consulting, facilitating a smooth transition and adoption. With essential pre-built capabilities, they surpass other cloud accounting alternatives that barely provide after-the-fact financial reporting without access to critical financial control that you need with growth.

If you’re moving beyond QuickBooks, Xero, or FreshBooks, these solutions are perfect for advancing to the next stage of growth without straining your finances. Ensure a thorough analysis of your specific needs to pinpoint the solution aligning with your critical success factors. If you lack regular insights into these solutions, consider engaging independent ERP consultants for informed guidance.

FAQs

What is the difference between a startup and a small company as far as their needs for an ERP system go?

The startup companies are much smaller in size than other SMB segments. They typically have revenues under $5 mil. These companies also have an extremely limited budget for their implementation, typically under $30K. They can’t afford to hire expensive consulting firms. The systems designed for startups are overly simplified to allow startups to implement them without much external help.

Why do larger systems require help from consulting firms?

The larger the ERP system, the more layers it will have with its configurable options. These layers of hierarchy make data entry easier and users efficient as they interact with the system. These layers and tracking of dependencies also make the ERP implementation projects extremely complex and error-prone. Without the help of consultants, you are likely to overengineer the processes and experience poor results.

How much work is expected from startup companies in the DIY mode?

The consulting companies work by hours. So if they are not spending as much time with training and implementation due to the limited budget, they will expect you to do the heavy lifting. Also, when you are a startup, you might not have budget to go through the process of standardization and reengineering. The consulting costs might be the same Irrespective ofwhether you are a startup or a large company. And that could be as much as $200K-300K that you might not be able to afford. So you need to choose a product that is simpler in architecture. Otherwise, they might expect you to do the 90% of the work.

Top 10 Construction ERP Systems for 2024

Top 10 Construction ERP Systems in 2024

Leave a Comment / Blog, Construction, ERP / By Sam Gupta / March 20, 2022 March 17, 2025

The construction industry necessitates dedicated ERP systems tailored for distinctive accounting and payroll demands. This explains why accountants often undergo specialized training in construction accounting when transitioning into this industry.

Moreover, industries adjacent to construction, even if not at its core, often adopt numerous processes from it. Manufacturers supplying the construction sector undergo pre-construction, bidding, and submittal processes. Likewise, contractors like electrical, plumbing, and HVAC may share these processes and necessitate specific feature sets.

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Hence, ERP systems not tailored for construction accounting and industries may seem out of place. So, which construction ERP systems should we consider, and how do we assess them? Let’s kick off with a compilation of the top 10 construction ERP systems frequently implemented in the industry. This list is curated after analyzing numerous ERP systems and their capabilities using publicly accessible information, along with insights from our team’s experience in evaluating these systems for clients. The intent here is not to make recommendations but to present options for your thorough consideration. Are you prepared to delve into the list?

Criteria

Overall market share/# of customers. The higher the market share of the product, the higher it ranks on our list.
Ownership/funding. The more committed the management to the product roadmap, the higher it ranks on our list.
Quality of development (legacy vs. legacy dressed as modern vs. modern UX/cloud-native). The more cloud-native are construction capabilities, the higher it ranks on our list.
Community/Ecosystem. The larger the community for the construction product, the higher it ranks on our list.
Depth of native functionality for specific industries. The deeper the construction functionality provided out-of-the-box that the publisher owns, the higher it ranks on our list.
Quality of publicly available product documentation. The poorer the product documentation, the lower it ranks on our list.
Construction product share. The higher the focus on construction, the higher the ERP system ranks on our list.
Ability to natively support diversified business models. The more diverse the product, the higher it ranks on our list.
Acquisition strategy aligned with construction. The more aligned the acquisitions are with construction, the higher it ranks on our list.
User Reviews. The deeper the reviews on public sites by construction companies, the higher the score for a specific product.
Must be an ERP product. It can’t be an edge product such as Salesforce, ProCore, Adeaca, InEight, or ServiceNow. It also can’t be an add-on owned by ISVs or VARs that sits on top of other accounting platforms.

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10. Viewpoint

Similar to CMiC, Viewpoint stands as a longstanding player in the construction domain. Since its acquisition by Trimble, it has provided more extensive construction management features. Despite endeavors to shift their legacy codebase to the cloud, many screens still retain a distinctly on-premises appearance.

Functionally, Viewpoint can address the majority of your construction business requirements, spanning construction management, estimating, construction finance, equipment management, and more. While Viewpoint’s revenue share surpasses CMiC’s in the construction sector but falls short of Deltek’s, its recent valuation during the Trimble acquisition reached $1.2 billion. Given these factors, Viewpoint retains its position at #10 on our list of the top 10 construction ERP systems, with no change in rank this year.

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9. Unanet

In contrast to CMiC and Viewpoint, Unanet focuses on Architectural and Engineering firms, catering to stringent DCAA compliance requirements for government contractors, akin to Deltek. Setting itself apart from its legacy counterparts, Unanet boasts a contemporary, cloud-native interface.

Although Unanet offers a comprehensive solution for project-centric firms, it operates atop other accounting packages like Sage or SAP. This is commonly employed in a two-tier setting, where larger enterprises seek enhanced financial control at the corporate level. Despite its robust features, Unanet holds a smaller market share compared to Viewpoint and because of these reasons, Unanet ranks at #9 on our list.

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8. SAP S/4 HANA

Similar to Microsoft Dynamics 365 F&O, S/4 HANA caters to enterprise companies with over 10-15 entities. Both solutions boast seamless integration of resourcing and procurement within projects, facilitating effective supply chain management, resourcing, and forecasting. Additionally, they feature robust field service components. SAP S/4 HANA expands its portfolio with complementary solutions like SuccessFactors for HCM and Concur, encouraging best-of-breed configurations. Companies often leverage SAP S/4 HANA alongside other leading solutions, such as Salesforce for CRM and Workday for HCM.

Although SAP S/4 HANA lags in operational ERP capabilities in the cloud, its financial functionalities suffice for many construction companies. Vanilla ERP systems may not be as pertinent in the construction space, leading these companies to seek construction-centric solutions like Unanet or Procore in a two-tier setting for operational construction needs. Consequently, SAP S/4 HANA retains its position at #6 on our list of the top 10 construction ERP systems this year.

7. Sage Intacct

Unlike Acumatica, Sage Intacct primarily targets service-centric industries, including construction—a sector that has been a significant revenue driver for Sage through its Sage 300 CRE product. Although Sage Intacct may not currently boast the same construction market share as competing products or Sage 300 CRE, its design aligns well with construction-centric industries. With robust multi-entity functionality and native consolidation capabilities, Sage Intacct stands out. Additionally, its seamless integration with ProCore positions it as a powerful cloud-native solution, offering a unique advantage that sets it apart from other competing solutions.

Although Sage Intacct boasts superior design for the construction sector compared to other cloud-native products tailored for product-centric industries, its entity-based pricing presents a drawback compared to Acumatica. However, as Sage Intacct continues to enhance its capabilities, mirroring those of Sage 300 CRE, it is anticipated to provide a migration path for customers transitioning from the CRE product.

By expanding its capabilities, Sage Intacct aims to capture a more substantial share of the construction market compared to its competitors. However, its current limitations, particularly in areas like union reporting, have led to a slight reduction in Sage Intacct’s ranking. Nevertheless, it retains the position of #7 on our list of the top 10 construction ERP systems.

6. Sage 300 CRE

As the longstanding leader in construction and real estate, Sage 300 CRE boasts robust accounting functionality and seamless integration with ProCore, a powerhouse in construction management. While its capabilities in AE and GovCon may not be as pronounced, Sage 300 CRE remains an appealing choice for SMBs needing comprehensive features in construction accounting, estimation, job cost codes, and project procurement, backed by Sage’s financial stability.

While Sage 300 CRE stands strong for SMB construction companies today, its future is uncertain due to Sage’s focus on the Intacct portfolio. Existing customers face a dilemma as transitioning to Intacct may lack the same depth. Prospective users may hesitate, anticipating potential shifts in Sage’s product strategy. Consequently, we’ve significantly adjusted its ranking this year, placing it at #6 on our list.

5. Acumatica

Much like Sage Intacct, Acumatica ranks among the top three cloud-native ERP products. Acumatica offers a construction edition with robust features tailored to construction-centric field services, payroll, and job codes. While lacking some multi-entity functionality, Acumatica compensates with seamless integration with ProCore. Its consumption-based pricing appeals to construction companies with fluctuating workforce needs for various projects, positioning it as a compelling choice.

Acumatica may need additional add-ons for comprehensive DCAA compliance compared to Deltek and Sage 300 CRE. Nevertheless, its core features, including accounting, project management, field service, construction job management, and cost code tracking, are expected to be more robust. Despite these strengths, Acumatica faces limitations in globalization and location capabilities, limiting its scope in a few countries. Consequently, Acumatica’s ranking has been downgraded this year, although it maintains the #5 position on our list.

4. IFS

IFS offers a wealth of functionality designed for companies with substantial asset and field service operations, making it particularly advantageous for the construction sector. Tailored service-centric capabilities cater to project-driven organizations, aligning with the data model of companies managing large programs. With WBS-centric processes providing comprehensive project visibility, including field services, IFS stands out as an excellent choice for construction-centric industries. Positioned uniquely, IFS appeals to enterprises in search of mature, industry-specific capabilities, minimizing the necessity for extensive development compared to generic ERP systems like SAP or Oracle.

Navigating the IFS data model requires an adept internal team and external ERP advisory support, crucial for aligning processes with its intricate structure. Tailored for upper mid-market companies outgrowing smaller systems like Acumatica or NetSuite, IFS offers mature capabilities for enterprise-wide asset scheduling and maintenance. Beyond functional prowess, IFS adeptly handles the transactional workload of upper-mid-market enterprises.

Distinguished by robust global, multi-entity capabilities, IFS operates seamlessly as a cloud-native ERP solution. With a substantial customer base in the $100M – $1B revenue range, many approaching the $1B mark, IFS has surged into this year’s ranking at #4. Recent successes in the North American market and securing prominent enterprise logos in construction contribute to its notable ascent on our list.

3. Microsoft Dynamics 365 F&O

Catering to enterprise companies with over 10-15 entities, Microsoft Dynamics 365 Finance and Operations aligns well with the construction industry. SMBs in construction often manage numerous entities, typically assigning one per project based on project complexity and financial risk. Although transaction volumes are lower than retail or manufacturing, Dynamics 365 Finance and Operations effectively addresses the unique needs of construction SMBs.

Although Microsoft Dynamics 365 Finance and Operations lacks the operational depth of specialized solutions, larger companies favor its corporate-level financial control. In a two-tier setting, they often utilize additional Dynamics F&O add-ons like Adeaca for operational requirements. Addressing construction-specific features may necessitate further add-ons or custom development for optimal functionality.

Furthermore, MS365 F&O offers seamless integration for field service, HCM, and CRM at the database level, empowering large companies to construct a best-of-breed architecture. This consistency in performance has contributed to Microsoft Dynamics 365 Finance and Operations gaining the new rank at #3 on our list of top 10 construction ERP systems this year.

2. Oracle Cloud ERP

Unlike SAP S/4 HANA and Microsoft Dynamics 365 F&O, Oracle ERP Cloud stands out as a prominent leader in the construction enterprise space, offering extensive operational functionality tailored for construction-centric businesses. Oracle’s construction-focused ERP Cloud portfolio encompasses various products, including Oracle Aconex for design and construction coordination, Primavera products for project and portfolio management, Textura payment for subcontractor invoicing, and additional tools for submittal management during the pre-construction phase, fostering collaboration among general contractors and subcontractors.

Oracle’s operational capabilities in construction industries grant it a notable advantage over competitors in the enterprise space, including Microsoft F&O and SAP S/4 HANA. While Oracle may not exhibit the same depth in last-mile functionality for government contractors as Deltek, Sage, or Unanet, its globalized and localized features cater to the demands of large public construction firms. Oracle Cloud ERP remains an excellent choice for enterprises seeking to consolidate global entities seamlessly within a single database, minimizing the need for numerous subsidiary-level ERP systems in a two-tier setting. Consequently, Oracle Cloud ERP has significantly elevated its position on this year’s list, now securing the #2 ranking.

1. Deltek

Deltek dominates the construction and GovCon sectors, boasting a substantial market share and a robust valuation of $2.8 billion in 2016. Outclassing legacy competitors, Deltek stands as one of the GovCon giants, securing major customers like AWS and Booz Allen Hamilton. With advanced cloud-native functionality, Deltek outpaces smaller vendors like Viewpoint and CMiC. Its solution, widely embraced, particularly by larger construction firms, solidifies Deltek’s leadership in the industry.

Deltek gains a distinct advantage through its extensive ecosystem penetration. Major GCs using Deltek often mandate their sub-cons to adopt the platform, fostering collaboration, especially in the pre-construction and bidding phases. While lacking Oracle ERP Cloud’s extensive globalized features, Deltek excels in operational capabilities, catering to upper mid-market organizations. In the upper mid-market space, Deltek faces minimal competition, contributing to its remarkable ascent in the rankings. Deltek now claims the top spot on our list of the top 10 construction ERP systems.

Conclusion

Construction businesses require specialized processes and accounting solutions. Generalized ERP systems often prove inadequate for meeting the unique needs of the construction industry. Selecting an ERP becomes even more challenging for industries blending construction with manufacturing, service repair, or distribution.

When assessing a construction ERP system, prioritize understanding and identifying unique critical capabilities for successful implementation. This curated list aims to offer potential options that align with your specific needs. But don’t underestimate the importance of an independent ERP advisor for your construction ERP journey.

FAQs

What is the difference between construction and manufacturing ERP systems?

While project-based and engineer-to-order manufacturing might be perceived to have the same processes as construction, construction business processes have additional complexities. These factors could include the granularity required for job codes and retainage tracking. It may also include the pre-sales process with forecast requiring eliminating jobs where you might be competing through multiple channels.

What if our company does both manufacturing and construction?

Yes, some businesses might have two different business models, one for construction and another for manufacturing. If this is the case, identify if you have any construction-specific accounting and payment elements to your business processes. If you genuinely have both business models, you might be better off with solutions that can support both business models as part of the same product.

What are the most important critical success factors for construction companies?

The most important critical success factors for construction businesses include tracking the job codes and retainage amount. It also consists of the RFP collaboration and sales territory planning during the pre-construction phase.

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10. Project Management

9. Data Warehouse/Data Lake

8. Business Intelligence (BI, S&OP, CPM, and ODP)

7. Integration Technologies

6. Manufacturing Software/MES

5. Supply Chain Software (P2P, WMS, and TMS)

4. Human Capital Management

The 2025 Digital Transformation Report

3. E-commerce and POS Platforms

2. ERP and Accounting Software

1. Customer Relationship Management

Conclusion

FAQs

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Criteria

ERP Selection: The Ultimate Guide

10. Blue Link ERP

Strengths:

Weaknesses:

9. SAP S/4 HANA

Strengths

Weaknesses

8. Oracle Cloud ERP

Strengths:

Weaknesses:

7. Aptean ProcessPro

Strengths

Weaknesses

6. SYSPRO

Strengths

Weaknesses:

5. ECI Deacom

Strengths

Weaknesses

4. QAD

Strengths

Weaknesses

3. Microsoft Dynamics 365 Business Central

Strengths

Weaknesses

2. Microsoft Dynamics 365 Finance & Operations

Strengths

Weaknesses

1. Sage X3

Strengths

Weaknesses

Conclusion

FAQs

ERP Selection: The Ultimate Guide

Criteria

The 2025 Digital Transformation Report

10. SYSPRO

Strengths

Weaknesses

9. Rootstock

Strengths

Weaknesses

8. Deacom

Strengths

Weaknesses

7. Oracle Cloud ERP

Strengths

Weaknesses

6. Microsoft Dynamics 365 Finance & Operations

Strengths

Weaknesses

5. SAP S/4 HANA